SR-8-E (14)
J-L
CA:RMM:rmdl162/hpca
City ~ouncil Meeting 8-7-90
AUG 7 1990
Santa Monica, California
STAFF REPORT
TO:
Mayor and city council
FROM:
city Attorney
SUBJECT:
Ordinance Approving the Development Agreement
between the Pacific Beach Development Limited
Partnership and the City of Santa Monica
At its meeting on August 1, 1990, the city Council
introduced for first reading an ordinance approving the
Development Agreement between Pacific Beach Development Limited
Partnership and the City of Santa Monica. The ordinance is now
presented to the city Council for adoption.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be adopted.
PREPARED BY: Robert M. Myers, city Attorney
Mary H. Strobel, Deputy city Attorney
J-F
AUG ,'1990
......- --- ~~ -. --.......
DEVELOPMENT AGREEMENT
between
PACIFIC BEACH DEVELOPMENT LIMITED PARTNERSHIP,
a California limited par~nership
and
CITY OF SANTA MONICA,
a municipal corporation
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TABLE OF CONTENTS
1.
Definitions. .
2.
Description of Property
3.
Descrintion of Project . .
3(a)
3(b)
3(C)
3(d)
3(e)
3(f)
3(g)
4.
Parking
primary Components of Project .
Maximum Floor Area . . . . . . . .
Building Height . . .. ....
Maximum Parcel Coverage
Minimum Setbacks . . . . . . . . .
Access and Circulation
Landscaping . . . . . . . .
4(a) Total Parking Spaces Required . . . . . .
4(b) Hotel Spaces . . . . . . . . . . . . . . . . . .
4(c) Pub 1 ic Spaces . . . . . . . . . . . . . . . . . .
4(d) Compact, Tandem and Handicap Spaces . . . . . . .
4(e) Minimum Dimensions . . . . . . . . . . . . . . .
6
22
22
22
23
26
28
28
31
31
32
32
33
35
37
37
38
5(a) Permitted Uses . . . . . . . . . . . . . .. 38
5(b) Sale and Consumption of Alcoholic Beverages. 39
6.
pro;ect Mitigation Measures
Parks and Recreation Fee
8.
. . . . . . . . . . . . .
Art . . . . . . . . . . . .
Mitigation Measures . . . . . . . . . .
No Additional Mitigations . . . . .
State Law . . . . . . . . . . .
General Services Requirements
8(a) Compliance with Requirements . . . . . .
8(b) Public Sewer Capacity Allocation . . . .
9.
Changes to pro;ect . . . . .
9(a) Floor Area Changes . . . . . . . . . . . . .
9(b) Subterranean Changes . . . . . . . . . .
9(c) Acceleration Lane . . . . . . .
9(d) ARB and Landmarks Commission Changes . . . .
9(e) Major Changes . . . . . . . . . . . . . . . . . .
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43
43
44
47
47
47
7. Non-Discrimination, Affirmative Action and Job Training 48
5.
Uses
6(a)
6(b)
6(c)
6(d)
6(e)
49
49
49
51
51
56
58
58
59
11.
10. Rent Control Board Aoorovals
. . . . . . . . .
12.
13.
14.
Assiqnment; Binding Effect .
Effect of Aqreement on Land Use Requlations
12(a)
12(b)
12 (c)
12 (d)
12(e)
Application of Existing Regulations
Transportation Management Program Fee
Processing and Permit Fees . . . .
Inconsistent Code provisions .
Architectural Review Board . .
certificates of Occupancy
Permits and Approvals
14(a)
14 (b)
14 (c)
15.
Issuance of Necessary Permits and Approvals
City Approvals and Permits . . . . . . . . .
Landmarks Commission Review . . . ...
Proprietary Capacity . . . . . . . .
16. Periodic Review of Compliance with Aqreement
16(a)
16(b)
16(c)
16(d)
City Review . . . . .
Required Findings
Evidence of Good Faith
Public Hearing . .
. . . . . .
Compliance
17. Enforcement
18. Validity of Aqreement
19.
Default
. . . . . . . . . . . . . . . . + -
19(a)
19(b)
Developer Defaults . . . .
city Defaults . . . .
20. Procedure Upon Default . . . . . . . . . .
20(a) Termination by city . . . . . . . . . . . .
20(b) Termination by Developer . . . . . . . . . .
20(c) Remedies Cumulative . . . . . . . . . . . .
20(d) Cessation of Rights and Obligations
20(e) Survival of Obligations . . . . . . . .
21.
Notice of Termination
22. Leasehold Mortqaqee's Riqht to Cure
23.
24.
25.
Duration of Aqreement
Supersedure by Subsequent Laws .
Estoppel certificate . . . .
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59
60
60
60
62
62
63
63
64
64
64
65
66
67
67
67
67
68
68
69
70
70
70
71
72
72
72
72
73
73
73
74
76
77
77
26. Recordinq of Aqreement . . . . . . . . . .. 78
27. Notices . . . ... . . . . . .. 78
28. Entire Agreement. . . . . . . . . . . . . 80
29. No Oral Modification. . . . . . . . . .. 80
30. Table of Contents and section Headinos . ... 80
31. severability; Invalidity of Particular provisions 81
32. No Partnership or Joint Venture . . . . . .. 81
33. Attorneys' Fees . . . . . . . . . . . . .. 81
34. Exhibits. . . . . . . . . . . . . ... 82
35. Construction.. . . . . . . . . . 82
36. Governinq Law . . . . . . . . . . . .. ..' 82
37 . Counterparts...... . . . . . . . . ... 82
38. Bindino Effect. . . . . . . . . . . . . . 82
39. Aoreement to Cooperate. . . . . . . . . . . . . . 83
40. state Mandated Revisions . . . . . . . . .. 83
41. No Third Party Beneficiary . . . . . . . .. 83
42. Limitation on Developer's Riqht of Enforcement 84
43. Revenue Tarqetinq . .. .... . . . .. 84
4. Transient Occupancy Tax . . . . . . . . . . . .. 84
EXHIBITS
Exhibit "A" - Legal Description of the Property
Exhibit "B" - Project Plans
Exhibit "e" - Mitigation Measures
Exhibit 110" - Requirements of the General Services Department
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DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT ("Agreement") is entered into
this 6th day of September, 1990, between the PACIFIC BEACH
DEVELOPMENT LIMITED PARTNERSHIP, a California limited partnership
("Developer"), in which Pacific Beach Development corporation, a
California corporation, is its sole general partner, and the CITY
OF SANTA MONICA, a municipal corporation organized and existing
pursuant to the laws of the State of California and the Charter of
the City of Santa Monica ("city"), with reference to the following
facts:
R E C I TAL s:
A. Pursuant to California Government Code section 65864 et
seq. and Santa Monica Municipal Code section 9800 et seq., the city
is authorized to enter into binding development agreements with
persons having legal or equitable interests in real property for
the development of such property.
B. The state of California ("state") is the legal owner of
certain real property ("Propertyll) consisting of approximately
213,755 square feet of land which is located in the City of Santa
Monica, state of California, as more particularly described in
Exhibit "All attached hereto and incorporated herein by this
reference. The Property, which constitutes a portion of the Santa
Monica State Beach which is designated as a state Recreation Unit
pursuant to California Public Resources Code Section 5019.56, is
operated by the City on behalf of the State pursuant to a written
operating agreement (lIstate operating Agreement") between the city
and the California Department of Parks and Recreation dated
September 1, 1981.
C. On March 31, 1987, the City issued for public response a
Request for Proposals ("RFP") to select a long-term developer/
lessee for the Property. The RFP contemplated redevelopment of the
Property for visitor-serving uses including, without limitation,
overnight visitor accommodations, restaurant and beach recreational
uses. The City prepared the RFP in consultation with the city's
Recreation and Parks Commission, the California Department of Parks
and Recreation and the state Lands Commission. Prior to its
issuance, the RFP was approved by the Santa Monica city Council,
the California Parks and Recreation Commission and the California
Department of Parks and Recreation.
D. On June 14, 1988, the City selected the Developer for the
purpose of entering into exclusive negotiations for development of
the Property pursuant to the RFP.
E. On November 14, 1988, the City and the Developer signed
an Exclusive Negotiating Agreement governing negotiations between
the city and the Developer for development of the Property.
F. Pursuant to the Disposition and Development Agreement
("DDAU) of even date herewith, between the City and the Developer,
the city has agreed to ground lease the Property to Developer upon
and subject to the terms and conditions described in the DDA, this
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Agreement and the form of ground lease attached as an exhibit to
the DDA.
G. On May 2, 1989, the Developer filed with the city an
Application for Development Agreement ("Development Applicationll),
which was "deemed sUbstantially complete" by the city on the same
date.
H. The Developer has paid all necessary costs and fees
associated with the City's processing of the Development
Application and this Agreement.
I. The City has complied with all procedures required by
Government Code Section 65864 et seq. and Santa Monica Municipal
Code section 9800 et seq. regarding the processing of the
Development Application and this Agreement, including the
following:
I(l) The Planning Commission held a duly-noticed public
hearing on the Development Application and this Agreement on May 16
and May 23, 1990 and made its written recommendation to the city
Council in accordance with Santa Monica Municipal Code Section
9812; and
I(2) The city council held a dUly-noticed public hearing
on the Development Application and this Agreement on July 17 and
31, 1990. Following completion of the public hearing and
consideration of the recommendation of the Planning Commission, the
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city council adopted an ordinance on August 7, 1990 ("Adoption
Date"):
I(2) (a)
this Agreement;
approving the Development Application and
I(2) (b) finding that this Agreement is consistent
with the city's General Plan;
I(2) (c) authorizing the city Manager to execute
this Agreement; and
1(2) (d) certifying the final Environmental Impact
Report ("EIRII) for the Project.
J. The final EIR certified by the city council analyzes in
detail the significant environmental effects of all aspects of the
proposed development of the Property. In certifying the final EIR:
J(l) The city Council determined that the final EIR has
been prepared in compliance with the California Environmental
Quality Act (Public Resources Code section 21000 et seq.) ["CEQA"],
the state CEQA Guidelines, and the City Guidelines for
Implementation of CEQA, adopted by City Council Resolution No.
6694(CCS) on May 24, 1983.
J(2) The City Council reviewed and considered the
information contained in the final EIR prior to certifying the EIR,
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and prior to approving the Development Application and this
Agreement.
K. The proposed development of the Property (" proj ect II )
involves three (3) primary components: a beach hotel and hotel-
related uses, a community center to serve the general public, and
a subterranean parking facility to serve users of both the hotel
and the community center.
L. The city council has determined that a development
agreement is appropriate for the proposed development of the
Property. This Agreement shall eliminate uncertainty in planning
for, and secure orderly development of, the Project, assure
installation of necessary improvements, provide for public services
appropriate to development of the Project, ensure attainment of the
maximum effective utilization of resources within the City at the
least economic cost to its citizens and otherwise achieve the goals
and purposes for which Government Code Section 65864 et seq. and
Santa Monica Municipal Code Section 9800 et sea. were enacted.
M. By entering into this Agreement, the City acknowledges
that it shall receive substantial benefits conferred as a result of
development of the Property in accordance with the terms, condi-
tions and obligations of this Agreement, the Ground Lease, the DDA
and the Community Center Operating Agreement (as hereinafter
defined) . In exchange for these benefits to the City, the
Developer desires to receive the assurance that it may proceed with
the Project in accordance with existing ordinances, resolutions and
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regulations applicable to such developments, subject to the terms
and conditions contained in this Agreement.
N. City and Developer mutually acknowledge that Developer
would not agree to expend the considerable amounts of time, effort
and money needed to construct the Project or to confer the
substantial benefits to the city under the terms, conditions and
obligations of this Agreement, the Ground Lease, the DDA and the
Community Center Operating Agreement without the assurances the
City provides to the Developer in this Agreement that the Developer
will be able to complete and operate the Project pursuant to the
Existing Regulations (as hereinafter defined).
NOW THEREFORE, in consideration for the covenants and
conditions hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:
1. Definitions. For purposes of this Agreement, the
following terms and phrases shall be interpreted as hereinafter
defined, unless the context clearly indicates a contrary intent of
the parties:
Adoption Date: The date listed in Recital section I(2)
of this Agreement.
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Aqreement: This Development Agreement entered into
between the city and the Developer.
Al ternati ve Subterranean Plans:
Section 9(b) herein.
As defined in
Art Appraiser: L.A. Louvre Gallery, or should L.A.
Louvre Gallery cease to do business, another qualified art
appraiser mutually acceptable to the City and the Developer.
Art Elements: certain architectural elements of the
Project which are designed by recognized artists commissioned by
the Developer. The Art Elements may include, without limitation,
the equipment in the Children I S Play Area, the Hotel Pool, and
miscellaneous Project elements such as doors, walls, panels and
cabinets.
Art and Environment Center: The portion of the Community
Center which comprises the Arts and Cultural Center and the Marine
Learning Center.
At-Grade Footprint: The at-grade perimeter outline of a
building based upon the perpendicular projection to the ground of
all portions of that building.
Arts and Cultural Center: The interior area located
wi thin the Community Center in which arts-related programs and
instruction are conducted. The Arts and Cultural Center shall
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include, without limitation, studio and classroom areas, lecture
facilities and related office space.
Averaqe PCH Elevation: The average elevation of Pacific
Coast Highway between the northern and southern Property Lines
measured at the center line of Pacific coast Highway.
Banquet Facilities: The ballroom and banquet facilities,
other than the Hotel Meeting Rooms and the Multi-Purpose Room,
which are located in the Hotel, including all related pre-function
rooms and ancillary areas.
Beach Cafe: A restaurant, as defined in the Zoning
Ordinance in effect on the Adoption Date, which is located in the
Community Center. The Beach Cafe shall include dining areas (which
may provide both interior and exterior seating) and related kitchen
and restroom facilities.
Beach Fund: The fund established by the City for the
deposit of all revenues received by the City from its operations,
concessions and leases of Santa Monica state Beach pursuant to the
state Operating Agreement.
Beach Parking Spaces: As defined in section 4(c) (i) (A)
herein.
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Beach Rental Kiosk: The temporary kiosk located on the
Property which will provide beach-related merchandise for sale and
rent.
Buildino Heiqht: The vertical distance of each building
measured from the Average PCH Elevation to the highest point of the
roof. Measurement of Building Height shall not include those
physical features set forth in Section 3(c).
Certificate of Occupancy: A temporary or final
certificate of occupancy which is required to be issued by the city
as a condition precedent to the occupancy of a building in the
Project.
Children's Play Area: A portion of the exterior area of
the Community Center, which is equipped by Developer with outside
playground equipment for use by the general public. The playground
equipment and its location within the Children's Play Area shall be
selected by Developer and submi tted to the city Manager for
approval, which approval shall not be unreasonably withheld or
delayed. The Children's Play Area is designated on Drawing 1 of
the Project Plans.
City: The City of Santa Monica, a municipal corporation,
organized and conducting business pursuant to the laws of the state
of California and the Charter of the City of Santa Monica.
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City Art: As defined in section 6(b) (i) herein.
city Council:
The city council of the City of Santa
Monica.
City Default: As defined in Section 19(b) herein.
city Manaqer: The City Manager of the City of Santa
Monica.
Community Center: As defined in Section 3(a) herein.
Community Center Operating Aqreement: The Community
Center Operating Agreement between the City and the Developer, a
copy of which is attached as an exhibit to the Ground Lease.
Community Center Parkinq Spaces: As defined in section
4(c) (i) (B) herein.
Community Room: The meeting and function room which
is located in the Community Center and which is available for use
and rental by public and private groups and individuals pursuant to
rules and regulations established by Developer in accordance with
the Community Center Operating Agreement. The community Room
includes both interior space and an exterior deck.
CUP: As defined in section 5(b) (i) herein.
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DDA: That certain Disposition and Development Agreement
between City and Developer, pertaining to the development of the
Property.
Default Notice: As defined in section 22(b) herein.
Desiqnated Area: The area of the Property established
for the Hotel and the Community Center within which the respective
At-Grade Footprints of the Hotel and Community Center must be fully
situated, as shown by the shaded areas on Drawing 1C of the Project
Plans.
Developer: Pacific Beach Development Limited
Partnership, a California limited partnership, in which Pacific
Beach Development Corporation, a California corporation, is the
general partner, and any and all successors and assigns as
authorized or approved under the DDA and the Ground Lease.
Developer Art: As defined in section 6(b) (ii) herein.
Developer Default: As defined in section 19(a) herein.
Development Application: As defined in Recital G of this
Agreement.
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District: The R4 High Density MUlti-family Residential
District, as defined in the zoning Ordinance in effect on the
Adoption Date.
Environmental Impact Report or EIR:
Recital Section 1(2) (d) of this Agreement.
As defined in
ExistinCf Regulations: The General Plan (including,
without limitation, the LUCE) and any and all codes, ordinances,
rules, regulations, standards, specifications and official policies
of the city governing or affecting development, density, height,
permitted uses, intensity of uses and improvements which are in
force and effect and applicable to the Project as of the Adoption
Date of this Agreement.
Failure to Cure Notice:
As defined in section 22 (c)
herein.
Floor Area: The total gross horizontal areas of all
floors of a building below the roof and measured from the interior
face of exterior walls, or a wall separating two abutting
buildings.
(i) Floor Area shall specifically include, without
limitation, the following areas occupied by:
(i) (A)
useable basements and cellars;
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(i) (B) restrooms,
kitchens, storage areas, and
corridors;
lounges, lobbies,
interior hallways and
(i) (C) interior courtyards, atria, paseos,
walkways and corridors covered by a roof or skylight;
(i) (D) at-grade parking covered by a
building, structure or roof; and
(i) (E)
above grade parking.
(ii) Floor Area shall specifically exclude the
following:
(ii) (A)
stairways and stairwells;
(ii) (B) elevators,
elevator equipment rooms;
elevator
shafts
and
(ii) (C) ramps to a subterranean or semi-
subterranean parking facility or ramps between floors of
a subterranean or semi-subterranean parking facility,
provided that the ramp is not utilized for the parking of
vehicles.
(ii) (D) unenclosed decks, balconies, and
platforms which are not used for commercial or restaurant
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activity, whether or not covered by a roof, including,
without limitation, the deck for the Hotel Pool, the deck
adjacent to the Community Room and the balconies outside
the Guest Rooms;
(ii) (E) exterior courtyards, arcades, atria,
paseos, walkways, and corridors which are not used for
commercial or restaurant activity, whether or not covered
by a roof;
(ii) (F) the volume above interior courtyards,
atria, paseos, walkways, and corridors, whether or not
covered by a building structure or roof;
(ii) (G) Subterranean Parking Facility devoted
exclusively for parking, uses associated with that
parking, and loading and unloading;
(ii) (H) at-grade parking not covered by a
building, structure or roof:
(ii)(I) loading docks covered by a roof or
canopy, but otherwise open or unenclosed and used
primarily for loading and unloading; and
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(ii)(J) mechanical equipment rooms,
electrical rooms, telephone rooms and similar space
located below grade.
Floor Area Chanqes: As defined in section 9(a) herein.
General Fund: The General Fund of the city's annual
budget.
General Plan: The comprehensive, long-term General Plan
for the physical development of the city of Santa Monica adopted
pursuant to California Government Code section 65300 et seq. and
Santa Monica Municipal Code section 9400 et seq. including all
elements of the General Plan.
Ground Lease: The written Concession Agreement and
Ground Lease of the Property between the City, as Landlord, and the
Developer, as Tenant.
Guest Room: Each unit which is designed for, or occupied
as, temporary lodging for individuals for a period of less than
thirty (30) consecutive days and which is separately available for
rental to guests of the Hotel.
Hotel: As defined in section 3(a) herein.
Hotel Meeting Rooms: The conference facilities and
meeting rooms, other than the Banquet Facilities and the Multi-
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Purpose Room, located in the Hotel, including all related pre-
function rooms and ancillary areas.
Hotel Parking Spaces:
As defined in Section 4 (b) (i)
herein.
Hotel Pool: The exterior swimming pool and the two (2)
exterior rinse pools located on the Property which are for the use
of the patrons of the Hotel, pursuant to reasonable rules and
regulations established by the Developer.
Hotel Restaurant: A restaurant (as defined in the Zoning
Ordinance in effect on the Adoption Date) which is located in the
Hotel. The Hotel Restaurant shall include dining areas, (which may
provide both interior and exterior seating) a bar and bar lounge,
and related kitchen facilities.
Hotel Spa: The health, beauty and fitness center which
is located in the Hotel, which may include, without limitation, a
beauty salon, a barber shop, separate locker facilities for men and
women, a massage area, sauna, steam room, indoor jacuzzi, exercise
area and weight room.
Law: As defined in Section 24 herein.
Leasehold Mortgage: Any mortgage, deed of trust, pledge,
encumbrance or other security interest encumbering all or any part
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of Developer's leasehold estate in the property which is permitted
under the Ground Lease.
Leasehold Mortaaqee: A holder of a Leasehold Mortgage.
Leasehold Mortqaqee Notice: As defined in Section 22(b)
herein.
Liquor License Approvals:
5(b) (iii) herein.
As defined in section
LUCE:
General Plan.
The Land Use and Circulation Elements of the
Marine Learninq Center: The interior area located within
the Community Center in which environmental programs and
instruction are conducted, which shall include, without limitation,
studio and classroom areas, and related office space.
Mature Trees: As defined in section 3(g) herein.
MUlti-Purpose Room: The interior room which may be
located in the Hotel, as designated on the Project Plans.
Non-Peak Activity period: The period of time of each
calendar year, excluding the time between Memorial Day and Labor
Day, inclusive.
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Non-Reserved Hotel parkina Soaces: As defined in Section
4(b) (i) herein.
North House: The house which is part of the former
Marion Davies estate located on a portion of the Property as of the
Adoption Date.
Pacific Coast Hiqhway: The public highway also known as
California Route 1 which runs adjacent to the eastern Property
Line.
Peak Activity Period: The period of time of each
calendar year from Memorial Day to Labor Day, inclusive.
Planning Commission: The Planning Commission of the City
of Santa Monica.
Plantinq Areas: As defined in section 3(g) herein.
Plinth: The base block to be constructed on the Property
upon which the North House will be relocated.
Project: The proposed development of the Property as is
more particularly described in section 3 of this Agreement and in
the Project Plans.
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Project Plans: Those certain Project Plans dated
February 13, 1990, April 30, 1990 and June 15, 1990, prepared by
Skidmore, Owings & Merrill (as the same may be amended from time to
time in accordance with the terms of this Agreement, the DDA and
the Ground Lease) which are attached hereto as Exhibit IIBII and
which set forth the basic guidelines and scope for the development
of the Project.
Property: As defined in Section 2 herein.
Property Lines: As delineated and labeled on Drawing 1
of the Project Plans.
Public Beach Facility: A public changing and shower
facility which is located in the Community Center and which
includes: (i) a room containing approximately 250 baskets for men
and approximately 250 baskets for women for daily storage of
clothing and other personal items, (ii) separate shower and toilet
facilities for men and women, providing six (6) showerheads, three
(3) toilets and two (2) urinals in the men's facility and six (6)
showerheads and five (5) toilets in the women's facility, and (iii)
separate changing or dressing areas for men and women.
Public Parkinq Spaces.
As defined in section 4(c)(i)
herein.
Reserved Hotel Parkinq Spaces:
4(b) (i) herein.
As defined in section
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Reserved Line: As delineated and labeled on Drawing 1 of
the Project Plans.
Reserved Portion: That portion of the Property which is
located between the Reserved Line and the western Property line of
the Property. The Reserved Portion is depicted as the shaded area
on Drawing Ie of the Project Plans.
RFP: As defined in Recital C of this Agreement.
Santa Monica Bay Restoration Project: A joint
federal/state program created under the auspices of the National
Estuary Program of the federal Environmental Protection Agency,
whose purpose is to devise programs for cleaning Santa Monica Bay
and for improving the water quality and ecology of Santa Monica
Bay.
Santa Monica state Beach: All land which is the subject
of the State Operating Agreement between the city and the
California Department of Parks and Recreation.
School District: The Santa Monica-Malibu Unified School
District.
Sculpture Garden: The exterior area located between the
Hotel and the Community Center on the Property in which sculpture
and other Works of Art are displayed for viewing by the general
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public. The Sculpture Garden is designated on Drawing 1 of the
Project Plans.
state: The state of California.
state Operating Agreement: As defined in Recital B of
this Agreement.
Subsequent Code Changes: As defined in Section 12(a)
herein.
Subterranean
Section 3(a) herein.
Parking
Facility:
As
defined
in
Tandem Parking: A group of two or more parking spaces
arranged one behind the other where one space blocks access to the
other space.
TMP Ordinance: As defined in Section 12(b) herein.
Works of Art: Lithographs, paintings, etchings,
sculptures and similar types of art.
Zoning Administrator: The Director of Planning of the
City of Santa Monica.
Zoning Ordinance: The city of Santa Monica Comprehensive
Land Use and Zoning Ordinance (Santa Monica Municipal Code Section
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~
ATTACHMENTS:
1. Planning Commission staff Report (May 23, 1990)
2. Development Agreement
3. Concession Agreement and Ground Lease
4. Disposition and Development Agreement
5. Tri-Party Agreement
6. Planning Commission Information Item (May 30, 1990)
7. Resolution Certifying Final Environmental Impact Report
with Statement of overriding Considerations
8. Ordinance Adopting the Development Agreement
9. Resolution Authorizing the Negotiation and Execution of
the Concession Agreement and Ground Lease
10. Resolution Authorizing the Negotiation and Execution of
the Disposition and Development Agreement
11. Resolution Approving the Tri-Party Agreement
12. Mitigation Monitoring Plan
w/sstb1
Footprint of the Hotel shall be entirely situated within the
Designated Area for the Hotel as shown on Drawing 1C of the
Project Plans.
3(a) (ii) Community Center. The Community Center
shall include the Beach Cafe, Public Beach Facility, the Art
and Environment Center, the community Room, the Children's
Play Area and the Sculpture Garden. The community Center
shall include the North House which shall be relocated from
its existing location on the Property to be part of the
Community Center in accordance with the Project Plans. The
At-Grade Footprint of the Community Center shall be entirely
situated within the Designated Area for the Community Center
as shown on Drawing 1C of the Project Plans.
3 (a) (iii) Subterranean Parkinq Facility. The total
of all subterranean areas of the Project designed or devoted
principally for parking and uses associated with such parking,
as shown on Drawings 6 and 7 of the Project Plans.
3(b) Maximum Floor Area. The total Floor Area of the
Project shall not exceed 209,684 square feet. The maximum Floor
Area of the Hotel and the Community Center shall be as follows:
3(b) (i) Hotel. The Floor Area of the Hotel shall
not exceed 193,601 square feet. The maximum Floor Area of
certain component uses within the Hotel which are listed below
shall be as follows:
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3(b) (i) (A) Hotel Restaurant. The Floor Area
of the Hotel Restaurant shall not exceed an aggregate of
5,800 square feet, within which the Floor Area for the
interior dining room shall not exceed 2,030 square feet,
the Floor Area for the outdoor dining area shall not
exceed 1,500 square feet, the Floor Area for the kitchen
shall not exceed 1,430 square feet and the Floor Area for
the bar and bar lounge shall not exceed 840 square feet.
The Hotel Restaurant shall contain no more than 200 seats
for interior and outdoor dining and 25 seats at the bar
and lounge area. The Hotel Restaurant shall not be open
for new seating on weekdays from 3:30 p.m. to 6:30 p.m.:
provided, however, the bar and bar lounge in the Hotel
Restaurant may be open for new seating on weekdays from
3:30 p.m. to 6:30 p.m.
3 (b) (i) (B) Hotel Meetinq Rooms. The Floor
Area of the Hotel Meeting Rooms shall not exceed an
aggregate of 4,428 square feet.
3 (b) (i) (C) Multi-Purpose Room. The Floor Area
of the Multi-Purpose Room shall not exceed 2,001 square
feet.
3 (b) (i) (D) Banquet Facilities. The Floor Area
of the Banquet Facilities shall not exceed 7,572 square
feet.
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3(b) (ii) community Center. The Floor Area of the
Community Center shall be 16,083 square feet (plus or minus 10
square feet). The Floor Area of certain component uses wi thin
the Community Center which are listed below shall be as
follows:
3 (b) (ii) (A) Beach Cafe. The Floor Area of the
Beach Cafe shall be an aggregate of 2,747 square feet
(plus or minus 10 square feet), within which the Floor
Area for interior dining shall be 1,417 square feet (plus
or minus 10 square feet), the Floor Area for outdoor
dining shall be 1,667 square feet (plus or minus 10
square feet), the Floor Area for the kitchen shall be 349
square feet (plus or minus 10 square feet) and the Floor
Area for the restrooms shall be 84 square feet (plus or
minus 10 square feet). The Beach Cafe shall contain no
less than 190 seats nor more than 200 seats for interior
and outdoor dining.
3(b) (ii) (B) Public Beach Facility. The Floor
Area of the Public Beach Facility shall be 2330 square
feet (plus or minus 10 square feet).
3 (b) (ii) (C) community Room. The Floor Area of
the Community Room shall be 815 square feet (plus or
minus 10 square feet). There will additionally be an
exterior covered terrace area which shall be 250 square
feet (plus or minus 10 square feet) and an uncovered
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terrace area of 825 square feet (plus or minus 10 square
feet) which shall be adjacent to, and a part of, the
Community Room.
3(b) (ii) (D) Art and Environment Center. The
Floor Area of the Art and Environment Center shall be an
aggregate of 6,197 square feet (plus or minus 10 square
feet). Within the Art and Environment Center, the Floor
Area of the Arts and Cultural Center shall be 3,525
square feet (plus or minus 10 square feet) and the Floor
Area of the Marine Learning Center shall be 2,672 square
feet (plus or minus 10 square feet).
3(c) Buildinq Heiqht. No building or structure in the
Project shall exceed four (4) stories nor have a vertical height
which extends more than thirty-five (35) feet above the Average peR
Elevation. The following shall be permitted to exceed the Building
Height:
3(c) (i) Chimneys, vents, stacks, ducts, skylights
and steeples, provided such features do not extend more than
five (5) feet above the Building Height.
3(c) (ii) Parapets, fire separation walls and open
work safety guard rails, provided they do not exceed forty-two
(42) inches in height.
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3 (c) (iii) Elevator shafts, stairwells, or
mechanical room enclosures above the Building Height provided:
3 (c) (iii) (A) The enclosure is used exclusively
for housing the elevator, mechanical equipment, or
stairs.
3(c) (iii) (B) The elevator shaft does not
exceed fourteen (14) feet above the Building Height.
3(c) (iii) (C) The stairwell enclosure does not
exceed ten (10) feet above the Building Height.
3(c) (iii) (D) The area of all enclosures and
fixtures identified in 3(c)(iii) (A), 3(c) (iii) (B), and
3(c) (iii) (C) that extend above the Building Height shall
not exceed twenty-five percent (25%) of the roof area.
3 (c) (i v) The screening required pursuant to Section
9040.14 of the Santa Monica Zoning Ordinance, in effect as of
the Adoption Date, of tanks, ventilating fans, or other
mechanical equipment required to operate and maintain any
building in the Project, provided that the total area enclosed
by all screening does not exceed thirty percent (30%) of the
roof area, and provided the screening does not extend more
than ten (10) feet above the Building Height.
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3 (d) Maximum Parcel Coverage. The aggregate square
footage of the At-Grade Footprints of the Hotel and Community
Center shall not exceed 30% of the total square footage of the
Property.
3 (e) Minimum Setbacks. Except for walls and fences
delineating the Property Lines, the Project shall comply with the
following minimum setbacks:
3 (e) (i) The elevator overrun for the Community
Center shall not be less than two (2) feet from the northern
Property Line of the Property and not more than two (2) feet
above the height of the Plinth. The Plinth shall not be less
than four (4) feet from the northern Property Line of the
Property. Except for the Plinth and said elevator overrun, no
other above-grade building or portion thereof shall be less
than twelve (12) feet from the northern Property Line of the
Property. No below grade facility or any portion thereof,
including without limitation the Subterranean Parking
Facility, shall be less than zero feet from the northern
Property Line of the Property.
3(e) (ii) No building or portion thereof shall be
less than eleven (11) feet from the southern Property Line of
the Property.
3 (e) (iii) No above grade building or portion
thereof shall be less than fifteen (15) feet from the eastern
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Property Line of the Property. No below grade facility or any
portion thereof including, without limitation, the
Subterranean Parking Facility shall be less than zero feet
from the eastern Property Line of the Property.
3(e) (iv) The minimum set backs from the western
Property line of the Property shall be as follows:
3 (e) (iv) (A) No above-grade building or portion
thereof [ other than an improvement permitted in the
Reserved Portion pursuant to section 3(e) (iv) (C)J shall
be less than zero feet from the Reserved Line.
3 (e) (iv) (B) Except as provided in Section
8(b), no below grade facility or any portion thereof,
including without limitation the Subterranean Parking
Facility shall be less than zero feet from the western
Property line of the Property.
3(e) (iv) (C) The Developer may construct,
install and erect only the following above-grade
improvements in the Reserved Portion all as more
specifically depicted on Drawing 1 of the project Plans:
walks, landscaping, the Hotel Pool and the adjacent deck
area (if not covered by a roof), the exterior dining
terrace for the Hotel Restaurant (if not covered by a
roof), the Sculpture Garden, the Children's Play Area,
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the exterior dining terrace for the Beach Cafe (if not
covered by a roof), the Beach Rental Kiosk, a new
bikepath connection providing access to and from the
Hotel and Community Center to the public beach bikepath
and public sidewalks, a ramp to provide access for
handicapped persons from the Proj ect to the beach of
approximately 440 feet in length (which ramp may extend
west of the Western Property line of the Property), a
walkway providing access to and from the Community Center
to the public beach and landscaped areas of the Hotel, a
bicycle rack, an exterior shower with two showerheads, a
drinking fountain, a transparent perimeter fence which
will not exceed four (4) feet six (6) inches above the
sand, garden walls not to exceed three (3) feet in
height, and portions of stairs providing access to and
from the Subterranean Parking Facility (if not covered by
a roof). No portion of such improvements shall be less
than zero feet from the western Property line of the
Property.
3(e) (iv) (D) Except for the above-grade
improvements specifically listed in section 3(e) (iv) (C),
Developer shall not construct, install or erect any
permanent above-grade building or portion thereof in the
Reserved Portion, including, but not limited to, the
Subterranean Parking Facility.
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3(f) Access and Circulation. Points of vehicular and
pedestrian ingress and egress to and from the interior of the
Project and Pacific Coast Highway and the vehicular and pedestrian
circulation system within the Project shall be substantially in
accordance with the Project Plans. Developer shall install and
maintain a five (5) foot sidewalk on the Property adjacent to
Pacific Coast Highway.
3(g) Landscaping. The Project shall be fully landscaped
in a manner which shall be substantially in accordance with the
Landscape Plan which is included as part of the Project Plans and
in conformance with the ErR mitigation requirements related to
landscaping which are enumerated on Exhibit "CII to this Agreement.
Landscaping for the Project shall include, without limitation, the
use of Mature Trees and other landscaping in open space areas
within the Project and on the perimeter of the Property. For the
purposes of this Section 3(g), "Mature Trees" shall mean: (i) for
palm trees, trees with between 15 feet and 22 feet of brown trunk
and (ii) for all other trees, trees with a box size of not less
than 36 inches. Landscaping for the Project shall specifically
include: (i) a planting area of ten (10) feet in width along the
eastern Property Line of the Property featuring a planting depth of
approximately five (5) feet, and (ii) a planting area of four (4)
feet in width along the northern Property Line of the Property on
either side of the elevator overrun for the Community Center
featuring a planting depth of approximately five (5) feet
(collectively, the IIPlanting Areasl1). The Planting Areas are shown
on Drawing 1B of the Project Plans. The Planting Areas shall be
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used for the planting of Mature Trees in compliance with the
standards set forth in Subchapter 5B of the zoning Ordinance in
effect on the Adoption Date. The City agrees that the Planting
Areas constitute satisfactory compliance with: (i) the mitigation
measures in the EIR for "Land Uself set forth on Exhibit C to this
Agreement and (ii) the requirements of Santa Monica Municipal Code
section 9040.17. The city further agrees that compliance with the
requirements of this Section 3(g) shall supersede any obligations
otherwise imposed by Section 9040.17, or any successor or similar
provision, as it pertains to the Property.
3 (h) Beach Improvements. Subject to approval of the
California Coastal Commission, and any other applicable State
agency or department, the Developer shall install a temporary
volleyball net and a ramp to provide access for handicapped persons
from the Project to the beach on the portion of the santa Monica
state Beach located west of the western Property line of the
Property. The specific location of such improvements shall
additionally be subject to approval of the city, which shall not be
unreasonably withheld or delayed.
4. Parking. Parking for the Project shall meet the
following conditions, which conditions the City acknowledges and
agrees are in compliance with the mitigation measures in the EIR
for If Traffic and Parking It set forth on Exhibit C to this Agreement:
4(a) Total Parking Spaces Required. Except as provided
in Section 9(b) (vi) (A), the Project shall provide a minimum of five
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hundred and twenty eight (528) total parking spaces in the
Subterranean Parking Facility, including standard and compact
spaces and spaces for Tandem Parking. No permanent at-grade or
above-grade parking shall be provided on the Property except for a
maximum of thirteen (13) at-grade parking spaces reserved for
guests checking into the Hotel and passenger drop-off and pick-up
for persons utilizing the Hotel and the Community Center.
4(b) Hotel Spaces.
4 (b) (i) A minimum of two hundred fifty (250)
parking spaces at the Project shall be for the use of guests
and employees of the Hotel ( "Hotel parking Spaces ") . One
hundred fifty (150) of the Hotel Parking Spaces shall be
reserved at all times for the use of guests and employees of,
and visitors to, the Hotel ("Reserved Hotel Parking Spaces") .
Up to one hundred (100) of the Hotel Parking Spaces may be
utilized by visitors to Santa Monica State Beach ("Non-
Reserved Hotel Parking Spaces") as more particularly set forth
below in section 4 (b) (ii) . Except as provided in Section
4 (b) (ii), all of the Non-Reserved Parking Spaces shall be
available only for the use of guests and employees of, and
visitors to, the Hotel. In those portions of the Subterranean
parking Facility utilized by the Developer for Hotel parking,
the Developer may horizontally stack automobiles in aisles of
the Subterranean Parking Facility, provided that an attendant
parks and moves all vehicles in such portion of the
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subterranean parking Facility during all hours in which
stacked parking is utilized.
4 (b) (ii) Except as provided in section 9 (b) (vi) (B) ,
during the hours of 7:30 a.m. to 4:00 p.m. on weekend days
during the Peak Activity Period and on Memorial Day, Fourth of
July and Labor Day I the Non-Reserved Hotel Parking Spaces
shall be available to visitors of the Santa Monica state Beach
pursuant to the provisions of Sections 4(b) (ii) (A) and (B)
below.
4 (b) (ii) (A) The Non-Reserved Hotel Parking
Spaces shall be available to visitors to Santa Monica
state Beach only to the extent that all of the Beach
Parking Spaces are occupied and any Non-Reserved Hotel
parking Spaces are not either occupied or blocked off
pursuant to section 4 (b) (ii) (B). The determination as to
whether the Beach Parking Spaces are all occupied and any
Non-Reserved Hotel Parking Spaces are not either occupied
or blocked off shall be made for each automobile entering
the Subterranean Parking Facility.
4 (b) (ii) (B) The Developer shall have the right
in its reasonable business judgment and operational
experience to reserve or otherwise "block off" on a daily
basis for exclusive Hotel use as many of the Non-Reserved
Hotel Parking Spaces as the Developer believes are
reasonably necessary to satisfy the anticipated parking
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needs of the Hotel for that given day to accommodate the
scheduled activities at the Hotel.
4(c) Public Spaces.
4(c) (i) Except as provided in Sections 4(c) (ii) and
4(c) (iii) two hundred seventy-eight (278) parking spaces at
the Project shall be reserved for the use of employees and
guests of the community Center and visitors to Santa Monica
state Beach ("Public Parking Spacesll), which shall be
allocated as follows:
4(c) (i) (A) one hundred seventy-six (176)
spaces shall be reserved for use by visitors to the Santa
Monica State Beach, including, but not limited to,
persons and families utilizing the Public Beach Facility
("Beach Parking Spaces").
4(c) (i) (B) one hundred two (102) spaces shall
be reserved for use by visitors to the community Center,
other than persons and families utilizing the Public
Beach Facility ("Community Center Parking Spaces").
4(C) (ii) The Beach Parking Spaces shall be open to
the public each day from 7:30 a.m. to 6:00 p.m. during the
Non-Peak Activity Period and from 7:30 a.m. to 8:00 p.m.
during the Peak Activity Period. The Community Center Parking
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Spaces shall be open to the public from 7:30 a.m. until 30
minutes after the last component in the Community Center
closes. At all times after which the Beach Parking Spaces or
the Community Center Parking Spaces are closed to the public,
those spaces may be utilized for employees and guests of, or
visitors to, the Hotel.
4 (c) (iii) During the time in which the Public
Parking Spaces are open to the public under Section 4(c) (ii),
employees and guests of, or visitors to, the Hotel may utilize
the PUblic Parking Spaces subject to all of the following
conditions:
4(c) (iii) (A) The Public Beach Spaces may be
utilized for Hotel purposes only to the extent that all
of the Hotel parking Spaces are occupied and any of the
Public Parking spaces are then unoccupied. Such a
determination shall be made for each automobile entering
the Subterranean Parking Facility. None of the Public
Parking Spaces may be reserved or otherwise IIblocked off"
for use by employees and guests of, or visitors to, the
Hotel.
4(C) (iii) (B) On weekend days during the Peak
Activity Period, and on Memorial Day, Fourth of July and
Labor Day, no Public Parking Spaces shall be used for
Hotel purposes.
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4 (c) (iii) (C) On weekdays during the Peak
Activity Period, no more than fifty (50) of the Public
Parking Spaces shall be used for Hotel purposes.
4 (c) (iii) (D) During the Non-Peak Activity
Period, no more than one hundred (100) of the Public
Parking Spaces may be used for Hotel purposes.
4(d) CQmpact, Tandem and Handicap Spaces. No more than
forty percent (40%) of the parking spaces provided under this
Agreement shall be striped for compact cars. No more than thirty
percent (30%) of the parking spaces provided under this Agreement
shall be for Tandem Parking, and none of the Public Parking Spaces
shall be for Tandem Parking. An attendant shall park and move all
vehicles in all areas of the Subterranean Parking Facility in which
Tandem parking is used. Except as provided in Section 9 (b) (vi) (e) ,
eight (8) non-tandem parking spaces on the P-1 level of the
Subterranean Parking Facility shall be designed, labeled and
reserved for public use by handicapped or disabled persons.
4(e) Minimum Dimensions. Standard size parking spaces
shall be at least eight and one-half (8.5) feet wide by eighteen
(18) feet deep. Compact size parking spaces shall be at least
seven and one-half (7.5) feet wide by fifteen (15) feet deep.
Spaces for Tandem Parking for two (2) cars shall be at least eight
and one-half (8.5) feet wide by thirty-three (33) feet deep.
Spaces for Tandem Parking for three (3) cars shall be at least
eight and one-half (8.5) feet wide by fifty-one (51) feet deep.
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Parking spaces for use by handicapped or disabled persons shall be
at least nine (9) feet wide by eighteen (18) feet deep, with a five
(5) feet by eighteen (18) feet loading space adj acent to each
space.
5. Uses.
5 (a) Permitted Uses. By execution of this Agreement, the
City specifically approves, as permitted uses, the following uses
of the Property and project, and hereby waives the application of
sections 9014.2, 9014.3, 9014.4 and 9014.5 of the Zoning Ordinance
to the Project and the Property to the extent these sections are
inconsistent with this Agreement:
5(a) (i) Hotel, including each of those attendant
uses which are set forth in section 3(a) (i);
5(a) (ii) Community Center, including each of those
attendant uses which are set forth in section 3(a) (ii);
5(a) (iii) Subterranean Parking Facility, including
those attendant uses which are set forth in Section 3 (a) (iii) ;
5(a) (iv) Such other beach-related recreational and
cultural uses available and affordable to the general public
which are consistent with the other permitted uses for the
Project and compatible with the surrounding neighborhood.
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Except as otherwise provided in this Agreement, no City permits or
approvals are required to use the Property or Project for these
permitted uses including, without limitation, a use permit,
conditional use permit, performance standards permit, zone
variance, zone change or any other zoning or planning permit or
approval, whether ministerial or discretionary. Nothing in this
Section 5(a} is intended, nor should be construed, to obviate any
requirements under codes, ordinances, rules, regulations or
official policies of the city to obtain licenses and permits in
connection with, and as a condition of, the operation of businesses
within the city.
5(b) Sale and Consumption of Alcoholic Beverages.
5(b) (i) The City hereby approves a conditional use
permit (nCUP") for the on-site sale, dispensing and
consumption of alcoholic beverages at the Project, including,
without limitation, beer, wine, malt beverages, and distilled
spirits. In connection with approving the CUP, the city
makes the following findings:
5(b) (i) (A) The proposed use and location are
in accordance with good zoning practice, in the public
interest, and necessary so that substantial justice be
done in that: the Hotel and Community Center are uses
permitted in accordance with the Development Agreement;
alcohol service is designed to accommodate the needs of
Hotel visitors through the availability of alcohol with
- 39 -
room service, within the Hotel Restaurant, and in mini-
bars in the Guest Rooms; and alcohol shall not be served
after 12:00 a.m. in the Community Center and users of the
Community Center shall not be allowed to bring alcohol to
the Community Center.
5 (b) (i) (B) The proposed use is compatible with
existing and potential uses within the general area,
traffic or parking congestion will not result, the public
health, safety, and general welfare are protected, and no
harm to adjacent properties will result, in that: the
Hotel and Community Center are compatible with other
beach-related recreational facilities in the area; the
service of alcoholic beverages within the Hotel and
Community Center will not significantly increase traffic
coming to the Project; the Project provides adequate
parking to accommodate the parking demand for the
Project; and the Project contains mitigation measures,
such as setback limitations, to protect adjacent
properties from being impacted by the Project.
5 (b) (i) (C) The welfare of the neighborhood
residents will not be adversely affected based on the
findings in Sections 5(b) (i) (A) and 5(b) (i) (B) and the
fact that alcohol service will be contained within the
Project with no service in the Hotel between the hours of
2:00 a.m. and 6:00 a.m. (except for mini-bar service) and
- 40 -
no service in the community Center between the hours of
12:00 a.m. and 6:00 a.m.
5(b) (i) (D) There will be no detrimental affect on
the nearby residentially zoned neighborhoods considering the
proximity of the alcohol service on the Project to residential
buildings, churches, schools, hospitals, playgrounds, parks,
and other existing alcohol outlets in that alcohol service
will be an incidental component of the Hotel and Community
Center operation and is designed to serve the needs of Hotel
visitors, visitors to the Beach Cafe and Community Room and
attendees of designated functions in the Arts and Cultural
Center. In addition, there will not be any sale of alcohol
for off-site consumption.
5(b} (i) (E) The sale of alcohol on the Project
for on-site consumption will not contribute to an undue
concentration of alcohol outlets in the area, in that the
service of alcohol in the Hotel and Community Center will
be principally in conjunction with the sale and
consumption of food served at the Project.
5(b) (ii) The CUP shall be subject to the following
conditions:
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5(b) (ii) (A) Alcoholic beverages shall not be
served in the Community Center between the hours of
12:00 a.m. and 6:00 a.m.
5 (b) (ii) (B) Except as provided in Section
5(b) (ii) (C), alcoholic beverages shall not be served in
the Hotel between the hours of 2:00 a.m. and 6:00 a.m.
5(b) (ii) (C) The Hotel may provide mini-bars
containing alcoholic beverages in Guest Rooms for the
convenience of Hotel guests.
5(b) (ii) (D) No alcoholic beverages shall be
dispensed or sold in the Project for consumption outside
of the Property.
5 (b) (ii) (E) The findings in Section 5 (b) (i)
and the conditions in Sections 5(b) (ii) (A) through
5(b) (ii) (E), inclusive, shall be transmitted to the
Alcoholic Beverage Control Board and any other applicable
governmental agencies in connection with any applications
by Developer for Liquor License Approvals.
5 (b) (iii) If Developer does not receive all
licenses, permits and approvals required from other applicable
governmental agencies including, but not limited to, the
Alcoholic Beverage Control Board and the State Parks and
Recreation Commission (collectively, the "Liquor License
- 42 -
Approvals") to sell and dispense alcoholic beverages for on-
site consumption in the Project either on the same terms and
conditions set forth in section 5(b)(ii) or other terms and
conditions acceptable to Developer in its reasonable business
judgment then Developer may elect, in its sole discretion, to
terminate this Agreement and the DDA, by delivery to City of
a written termination notice. The written termination notice
must be delivered by Developer prior to the earlier of: (i)
twenty (20) days after the Developer receives notification of
the final non-appealable decision of any applicable
governmental agencies including, but not limited to, the
Alcoholic Beverage Control Board and the state Parks and
Recreation Commission, that a required license, permit or
approval to sell and dispense alcoholic beverages will not be
issued on the terms and conditions set forth above or (ii) the
IIstate Approval Period Termination Daten (as such term is
defined in the DDA) .
6. Project Mitiqation Measures. To comply with applicable
provisions of the General Plan and to mitigate specific burdens
upon the community resulting from development of the Project,
Developer agrees to provide the following Project mitigation
measures:
6(a) Parks and Recreation Fee. Developer shall pay to
the City a Parks and Recreation Fee pursuant to Chapter 6C of
Article VI of the Santa Monica Municipal Code in effect on the
Adoption Date. The Parks and Recreation Fee shall be calculated as
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Two Hundred Dollars ($200.00) for each Guest Room in the Hotel and
shall be paid by the Developer prior to, or concurrent with, the
issuance of a building permit by the City for construction of the
Hotel.
6(b) Art. Developer shall make the following
contributions and expenditures for public art, which shall
constitute the total public art obligation of the Developer in
connection with the project:
6 (b) (i) Prior to issuance of the certificate of
Occupancy by the City for the Hotel the Developer shall expend
an amount equal to one percent (1%) of the Hard Costs (as
defined in the Ground Lease) of the Hotel to pay for Art
Elements and Works of Art for the Project (UCity ArtU). The
selection, designation and placement by Developer of the city
Art within the Project shall be subject to the prior approval
of the Santa Monica Arts commission, which approval shall not
be unreasonably withheld or delayed. The City Art shall be
displayed only in the community Center and exterior portions
of the Community Center (including the Sculpture Garden and
the Children's Play Area). Developer may not alter, replace,
or relocate any of the City Art without the prior approval of
the Santa Monica Arts Commission, which approval shall not be
unreasonably withheld or delayed. Developer may appeal any
decision of the Santa Monica Arts Commission under this
Section 6 (b) (i) to the city Council. The decision of the city
Council shall be final. Upon expiration of the term or the
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sooner termination of the Ground Lease, title to and ownership
of the City Art shall automatically vest in the city without
the execution of any further instrument and without paYment
therefor by the city.
6(b) (ii) In addition to the City Art, the Developer
shall provide on the Project additional Art Elements and Works
of Art [the "Developer Artll] such that the aggregate appraised
value of the city Art and Developer Art is not less than Two
Million Dollars ($2,000,000) at the time of the issuance of
the Certificate of Occupancy for the Hotel. Developer shall
provide the City with a written appraisal from the Art
Appraiser dated not more than thirty (30) days prior to
issuance of the Certificate of Occupancy for the Hotel which
states that the aggregate appraised value of the city Art and
the Developer Art is at least Two Million Dollars
($2,000,000). All Developer Art shall be selected by the
Developer in its sole and absolute discretion and displayed
throughout the Project in areas chosen by the Developer in its
reasonable business judgment. The Developer shall have the
right in its reasonable business judgment to alter, change,
replace and relocate Developer Art during the term of the
Ground Lease. The Developer shall own or lease all Developer
Art. Neither the City, the Santa Monica Arts Foundation, nor
the Santa Monica Arts Commission shall have any ownership in
the Developer Art.
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6 (b) (iii) At all times during the term of this
Agreement, Developer shall comply with both of the following
requirements:
6 (b) (iii) (A) The nature and quality of the
Developer Art shall be commensurate with the nature and
quality of the Developer Art on the Project as of the
date of the Certificate of Occupancy. upon written
request by the city, Developer shall provide the City no
more than once each five (5) years during the term of
this Agreement with a written statement from the Art
Appraiser stating that the nature and quality of the
Developer Art on the Proj ect as of the date of the
statement is commensurate with the nature and quality of
the Developer Art on the Project as of the date of the
certificate of Occupancy.
6(b) (iii) (B) The aggregate appraised value of
the city Art and the Developer Art shall not be less than
Two Million Dollars ($2,000,000). Upon written request
by the city, Developer shall provide the City no more
than once each five (5) years during the term of this
Agreement with a written appraisal from the Art Appraiser
stating that the aggregate appraised value of the city
Art and the Developer Art is at least Two Million Dollars
($2,000,000) .
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6(b) (iv) In recognition of the substantial public
art contribution for the proj ect by Developer under this
Section 6(b), the obligations of Developer to construct the
Art and Environment Center in the Community Center under the
Ground Lease and the obligation of the Developer to operate
the Art and Environment Center pursuant to the Ground Lease
and the Community Center Operating Agreement, the City agrees
that the Developer shall have no obligation to pay any fees
established by the city for public art with respect to the
Project at any time during the term of this Agreement.
6(c) Mitiqation Measures. Developer shall comply with
all of the EIR mitigation requirements enumerated on Exhibit "C" in
connection with the design and development of the Project.
6(d) No Additional Mitiqations. Except as specifically
set forth in this section 6 or as otherwise provided in this
Agreement, the City shall not be entitled to impose any mitigation
measures or fees in lieu thereof on the Project for impacts caused
by development of the Project.
6(e) state Law. Nothing in this Section 6 or any other
provision of this Agreement or the exhibits hereto is intended, nor
should be construed, to obviate any monitoring and enforcement
requirements for the mitigation measures in the EIR as more
specifically set forth in Public Resources Code section 21081.6.
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7. Non-Discrimination, Affirmative Action and Job Traininq.
7(a) Developer shall not discriminate against any
employee or applicant for employment in the Project on the basis of
race, religion or creed, sex, marital status, national origin, age,
sexual orientation, handicap, or acquired immune deficiency
syndrome (as defined in Santa Monica Municipal Code section 4951),
and shall cause a similar provision to be inserted in any contract
for work entered into by the Developer relating to the proj ect
other than purchase orders for standard commercial supplies,
materials or goods.
7 (b) Subj ect to the provisions of section 7 (a) above, the
Developer shall develop and submit to the City for approval prior
to the commencement of construction of the proj ect a sui table
affirmative action program for the hiring of labor and the
obtaining of materials during construction relating to employment,
upgrading, demotion or transfer, recruitment or recruitment
advertising, lay-off or termination, rates of payor other forms of
compensation and selection for training, including apprenticeship.
Any such plan shall recognize the necessity of compliance with
standard union hiring practices and shall not establish quotas of
any kind.
7(c) Prior to the issuance by the city of a certificate
of Occupancy for any building in the Project, the Developer shall
designate a representative whose responsibility it shall be to
identify those employment opportunities suitable for affirmative
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action, to develop and submit to the City for approval a program
designed to effectively address affirmative action and to implement
the program following City approval.
7(d) Developer shall, in all solicitations or
advertisements for employees in connection with the Project placed
by or on behalf of the Developer, state that all qualified
applicants shall receive consideration for employment without
regard to race, religion or creed, sex, marital status, national
origin, age, sexual orientation, handicap, or acquired immune
deficiency syndrome (as defined in Santa Monica Municipal Code
Section 4951).
8. General Services Requirements.
Sea) Compliance with Requirements. Developer shall
comply with all requirements of the city's Department of General
Services as enumerated in Exhibit "011. Except as specifically set
forth in Exhibit nDII, Developer' s right to develop the Proj ect
shall not be conditioned upon any other requirements of the
Department of General Services.
8(b) Public Sewer Capacity Allocation.
8(b) (i) In order to mitigate the projected sewage
flows from the Project, Developer shall, at its option, elect
one of the following two (2) options, either of which the city
acknowledges and agrees constitutes compliance with the
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wastewater reduction mitigation measure in the EIR set forth
in Exhibit C to this Agreement:
8(b) (i) (A) perform or cause to be performed
the retrofitting of off-site buildings and residences in
the city at locations to be approved by the city, which
approval shall not be unreasonably withheld or delayed,
with ultra low-flow toilets and low-flow showerheads so
as to reduce the projected sewage flows from those
buildings and residences to such a level that such
reduction when combined with the projected sewage flows
from the Project will result in a zero net flow, or
8(b) (ii) (B) pay to the city an in-lieu fee of
Eighty-Nine Thousand Four Hundred Twenty-Five Dollars
($89,425), which monies shall be utilized by the city to
perform retrofitting of off-site buildings and residences
in the city with ultra low-flow toilets and low-flow
showerheads.
8(b) (ii) Upon compliance by the Developer with the
provisions of either Section 8 (b) (i) (A) or 8 (b) (i) (B) the City
shall promptly process and approve any application by the
Developer for sewer allocation permits for the Project and
shall promptly issue such permits, so long as prior to the
issuance of the permits, Developer pays the applicable sewage
facilities charge in accordance with section 7190 of Ordinance
No. 1451 (CCS) in effect on the Adoption Date.
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8 (b) (iii) If Developer chooses to perform the
retrofitting outlined in section 8(b) (i) (A) above, the city
shall assist the Developer in its efforts to identify
opportunities for the retrofitting of off-site buildings and
residences in the city with ultra low-flow toilets and low-
flow showerheads.
9. Chanqes to Pro;ect. If, during the term of this
Agreement, Developer desires to make any Floor Area Changes or
changes to the subterranean areas of the Project in accordance with
the Al ternati ve Subterranean Plans, Developer shall do so in
accordance with the provisions of this section, the DDA and the
Ground Lease.
9(a} Floor Area Changes.
9(a) (i) Upon approval of the Zoning Administrator
(or the City Council on appeal), Developer may, wi thout
amending this Agreement, increase the Floor Area of the
specific components of the Hotel and the Community Center
which are specifically set forth in Sections 3 (b) (i) and
3 (b) (ii) respectively by five percent (5%) (If Floor Area
Changesll). Such approval shall require specific findings by
the Zoning Administrator (or the City Council on appeal) that
the proposed increase in Floor Area:
9(a) (i) (A) is consistent with the provisions,
purposes and goals of this Agreement;
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9 (a) (i) (B) will not significantly and
adversely affect the architectural integri ty of the
Project or the public benefits associated with the
Project;
9 (a) (i) (C) will not cause the total Floor Area
of either the Project, the Hotel or the Community Center
to exceed the respective maximum Floor Areas set forth in
Section 3(b);
9(a) (i) (D) will not result in an increase in
peak hour trips for the proj ect (calculated upon the then
current rates published by the Institute of Traffic
Engineers or a comparable index);
9(a) (i) (E) will not cause the total number of
parking spaces required for the Proj ect to exceed the
number of on-site parking spaces provided at the Project:
and
9(a) (i) (F) if there is a proposed increase in
Floor Area of any component of the Community Center, such
increase will not have a material adverse impact on any
other component of the community Center.
9(a) (ii) The procedure for obtaining approval of
a Floor Area Change shall be as follows:
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9(a) (ii) (A) The Developer shall file a letter
application with the city Planning Division. The
application shall specify the specific Floor Area Change
being requested and shall include plans describing such
change in a form approved by the Zoning Administrator.
If there is a proposed increase in Floor Area of any
component of the Community center, the letter application
shall specify the impacts of the proposed increase, if
any, on any other components in the Community Center.
9(a) (ii) (B) The fee for any such application
shall be the then current fee uniformly established by
the City for the filing and processing of variance
applications.
9 (a) (ii) (C) The Zoning Administrator shall
have thirty (30) days within which to determine the
completeness of the application. If the Zoning
Administrator determines the application to be
incomplete, the Zoning Administrator shall promptly
provide the Developer with written notice that the
application has been deemed incomplete, and such notice
shall itemize the grounds upon which the Zoning
Administrator has determined the application to be
incomplete. Upon a determination of incompleteness, the
application may be resubmitted by the Developer providing
the Zoning Administrator with the supplemental
information requested in the notice of incompleteness.
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The zoning Administrator shall then have an additional
thirty (30) days to determine whether the application is
complete.
9 (a) (ii) (D) A public hearing before the Zoning
Administrator shall be conducted not less than ten (10)
days nor more than sixty (60) days after the application
is determined to be complete, and notice of such hearing
shall be given in a manner consistent with the city's
standard noticing procedures for a variance application.
9(a) (ii) (E) Following the public hearing, the
Zoning Administrator shall prepare a written decision
within thirty (30) days which shall contain the findings
of fact upon which such decision is based and, in the
case of approval, any conditions of approval. In order
to approve such an application, the Zoning Administrator
must make the findings set forth in Section 9(a) (i).
9 (a) (ii) (F) A statement of official action
shall be issued by the Zoning Administrator on the date
of the Zoning Administrator's decision. A copy of the
statement of official action shall be provided to the
Developer by the Zoning Administrator in accordance with
Section 27.
9(a)(ii)(G) Any person may appeal the
approval, conditions of approval or denial of the
application to the City council if a written notice of
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appeal is filed with the city Clerk within fourteen (14)
days following the date of decision. The appellant shall
state the specific reasons for the appeal in the written
notice of appeal. Any such appeal shall utilize the
procedure then uniformly established by the city for the
appeal of variance applications and shall be accompanied
by the filing fee then required under that procedure.
PUblic notice of an appeal hearing shall conform to the
manner in which the notice of the original hearing was
given. A copy of the written notice of appeal shall be
provided to the Developer by the city in accordance with
Section 27.
9 (a) (ii) (H) A public hearing on the appeal
shall be held by the city Council no more than sixty (60)
days after the notice of appeal is filed with the City
Council. Following the public hearing, the City council
shall either affirm, reverse, or modify the decision of
the Zoning Administrator. A Statement of Official Action
shall be issued by the city Council within forty-five
(45) days following the public hearing. The decision of
the City Council shall contain the same findings required
for a decision of the zoning Administrator. Failure of
the City Council to either affirm, reverse or modify the
decision of Zoning Administrator within such forty-five
(45) day periOd shall constitute an affirmance.
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9 (a) (ii) (I) All public hearings conducted
pursuant to this subsection shall be conducted in
accordance with the then applicable procedural rules of
the hearing body.
9 (a) (ii) (J) Once the appeal is filed, the
appellant body may review and take action on all
determinations, interpretations, decisions, judgments, or
similar actions taken which were in the purview of the
original hearing body on the application and is not
limited to only the matters appealed or grounds for the
appeal as stated in the notice of appeal.
9(b) Subterranean Changes. without amending this
Agreement, Developer may elect to develop the subterranean areas of
the Project substantially in accordance with Drawings 2A, 6A and 7A
of the Project Plans ("Alternative Subterranean Plans") instead and
in lieu of developing the subterranean areas of the Project
substantially in accordance with Drawings 2, 6 and 7 of the Project
Plans. Such election shall be exercised by Developer upon written
notice to the Zoning Administrator together with plans submitted by
the Developer which reasonably evidence that under the Alternative
Subterranean Plans:
9 (n) (i) no portion of the subterranean area of the
Project will be located in the Reserved Area:
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9(b)(ii) the Floor Area of the Hotel Spa in the
subterranean area of the Project does not exceed 9,678 square feet:
9 (b) (iii) the gross square footage of the Hotel
does not exceed 283,654 square feet:
9 (b) (iv) the aggregate Floor Area of ancillary
Hotel uses (other than the Hotel Spa and the Subterranean Parking
Facility) in the subterranean area of the Project does not exceed
17,182 square feet:
9 (b) (v) the final revised layout for the
Subterranean Parking Facility is submitted to the Zoning
Administrator and the city's Parking and Traffic Engineer for their
approval, which approval shall not be unreasonably withheld or
delayed, prior to the issuance of any building permit for the
Project; and
9 (b) (vi) all of the parking requirements of Section
4 of this Agreement are satisfied, except for the following
permitted modifications:
9(b} (vi) (A) A minimum of five hundred twenty-
five (525) total parking spaces shall be provided in the
Subterranean Parking Facility.
9(b) (vi) (B) There shall be a minimum of two
hundred forty-two (242) Hotel Parking Spaces.
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9(b) (vi) (e) There shall be a minimum of
ninety-two (92) Non-Reserved Hotel Parking Spaces.
9(b) (vi) CD) A minimum of seven (7) non-tandem
parking spaces on the P-l level of the Subterranean Parking
Facility shall be designed, labeled and reserved for public
use by handicapped or disabled persons.
9(c) Acceleration Lane. In the event that the
installation of an acceleration lane on the southbound portion of
Pacific Coast Highway adjacent to the Project is required by the
State Department of Transportation or by the terms and conditions
of this Agreement, the Developer may develop the Project
substantially in accordance with Drawings ID and 9A of the Project
Plans instead and in lieu of developing the Project substantially
in accordance with Drawings 1 and 9 of the Project Plans without
amending this Agreement.
9(d) ARB and Landmarks Commission Chanqes. In the event
that changes to the Project are required by the ARB (or by the
Planning Commission following appeal of the determination of the
ARB) pursuant to section 12(e) of this Agreement or are required by
the Landmarks Commission (or by the City Council following appeal
of the determination of the ARB) pursuant to section 14(c) of this
Agreement, the Developer may incorporate such required changes into
the Project without amending this Agreement.
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9 (e) Major Changes. Except as otherwise provided in this
Agreement, any other changes to the Project shall require an amend-
ment to this Agreement in accordance with the provisions of Santa
Monica Municipal Code Section 9800 et seg., Government Code section
65864 et seq. and this Agreement.
10. Rent Control Board Aoorovals. Prior to demolition of the
existing structures located on the Property (other than the North
House which shall be relocated and preserved in accordance with the
provisions of this Agreement), the Developer shall be required to
comply with one of the following requirements:
10(a) Obtain all permits, approvals or other
determinations, if any, deemed necessary by the city Attorney for
the Project to be developed consistent with the Santa Monica Rent
Control Law, which may include a removal permit from the Rent
Control Board, one or more exemption determinations from the Rent
Control Board, or other Rent Control Board determinations that the
Property, or a portion thereof, is not subject to the jurisdiction
of the Rent Control Board. The city shall cooperate with the
Developer to the extent reasonably necessary in Obtaining the
requisite permits, approvals or administrative determinations; or
10(b) Obtain an enforceable court order
indicating that the existing structures may be demolished without
obtaining any further permits, approvals or other determinations by
the Rent Control Board.
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11. Assignment; Binding Effect. Developer shall not sell,
transfer, exchange, hypothecate, encumber or otherwise dispose of
its interest in the Property or the Project, or any interest
therein, except as permitted under the DDA and the Ground Lease.
Any transfer of Developer1s interest under the ODA or Developer's
leasehold interest under the Ground Lease which is permitted or
required under or pursuant to the DDA and the Ground Lease shall
automatically operate to transfer with such interest the benefits,
rights, burdens, duties and obligations of this Agreement. This
Agreement shall not be severable from Developer1s interest in the
Property and the Project. In the event of a permitted transfer to
a third party transferee, Developer shall be released from its
obligations under this Agreement with respect to the Property and
Project, or any interest therein, so transferred, except for those
obligations which have accrued or matured prior to the date of such
transfer; provided, however, that such release shall be conditioned
upon the delivery to the city of an assumption agreement executed
by the third party transferee in form and content reasonably
satisfactory to the city.
12. Effect of Agreement on Land Use Requlations.
12 (a) ADDlication of Existino Reaulations. Except as
specifically provided in this section 12 or otherwise in this
Agreement, development of the Property and the Project, including
without limitation, density, permitted uses, intensity of use,
design and improvement shall be governed by the Existing
Regulations. Development of the Property and the Proj ect shall not
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be governed by any amendments, revisions, additions or deletions to
the Existing Regulations or new laws or regulations of the city
governing or affecting development adopted subsequent to the
Adoption Date including, without limitation, any commercial
allocation program or similar program of the city intended to
control the future rate of commercial or hotel growth in the city,
or any future revisions to the General Plan or the Zoning Ordinance
resul ting from the City's Growth Management strategy (sometimes
collectively, "Subsequent Code Changes"), unless:
12(a) (i) the City and the Developer mutually agree
in writing; or
12(a) (ii) the Subsequent Code Changes are mandated
and required by changes in state or federal laws or
regulations as provided in Government Code Section 65869.5; or
12(a) (iii) the Subsequent Code Changes satisfy all
of the following conditions:
12(a) (iii) (A) the Subsequent Code Changes do
not impair the rights of the Developer to develop the
Property as contemplated in this Agreement;
12 (a) (iii) (B)
if Subsequent Code Changes
distinguish between "existingll development and "new" or
"proposedll development, the Project shall be considered
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to be an "existingll development (other than with respect
to changes to the Administrative and Technical
Construction Codes of the city (Article VIII, Chapter 1
of the Santa Monica Municipal Code) for which purpose the
Project shall be considered as a "new" development until
the Certificate of Occupancy of the Project is issued];
and
12(a) (iii) (C) the Subsequent Code Changes are
uniformly applicable to all uses and buildings which are
similar to the uses and buildings permitted in the
Project throughout the city.
12 (b) Transportation Manaqement proqram Fee. The
Developer shall comply with any ordinance which may be adopted by
the City council subsequent to the Adoption Date to establish a
Transportation Management Plan (IITMP Ordinance"). In the event
that the TMP Ordinance becomes effective prior to the issuance of
a Certificate of Occupancy for the Hotel, Developer shall comply
with any fees established pursuant to the TMP Ordinance as if the
Project were deemed to be nnewn construction and not "existing"
construction under the TMP Ordinance; provided, however, all trips
related to the Reserved Public Spaces shall be excluded from
calculation of the fees the Developer is required to pay under the
TMP Ordinance.
12 (c) Processinq and Permit Fees. Developer shall be
subject to all City-imposed application, processing and permit fees
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and charges, including utility connection fees, with respect to
applications for development and construction within the Property
which are in effect on the date on which each application is filed,
so long as such fees and charges are in force and effect on a
City-wide basis.
12(d) Inconsistent Code Provisions. As applied to
this Agreement and the Project, any provisions of the Santa Monica
Municipal Code or appendices thereto inconsistent with the
provisions of this Agreement, are hereby modified to the extent
necessary to effect the provisions of this Agreement.
12(e) Architectural Review Board. Elements of
building design directly related to building colors and materials,
lighting, trash enclosures screening, signage and landscaping for
the Project and those EIR mitigation measures enumerated on
Exhibit "c" to this Agreement related to the design of the Project
will be reviewed by the City's Architectural Review Board ("ARB")
in accordance with design review procedures in effect under the
Existing Regulations. The ARB shall have no authority to
disapprove or conditionally approve any features of the Project
which have been specifically approved by this Agreement or in the
Project Plans, including, without limitation, Building Height,
number of floors, the size and location of Hotel component uses as
set forth in Section 3(b) (i) and the size and location of Community
Center component uses as set forth in Section 3(b) (ii).
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13. certificates of Occupancy. Upon completion of any
portion of the project for which a separate building permit has
been issued in compliance with such building permit, the Existing
Regulations, this Agreement and other applicable agreements between
city and Developer, the City shall promptly issue a Certificate of
Occupancy therefor to Developer.
14. Permits and Approvals.
14(a) Issuance of Necessary Permits and Approvals.
The Developer shall satisfy all of the following requirements as a
condition to the obligation of the city to grant or issue the
approvals, consents or permits which are the subject of
section 14(b):
14(a) (i) satisfactory completion by the Developer
of all actions required prior thereto under (A) this
Agreement, (B) Existing Regulations, (C) any Subsequent Code
Changes applicable to the development of the Property and the
Project pursuant to section 12(a) and (D) any codes,
ordinances, rules, regulations and official policies and
condi tions of approval of the city which do not affect
development of the Property and the Project,
14(a) (ii) the issuance of any and all approvals of
the City which are required prior thereto by this Agreement
and which this Agreement specifically provides are
discretionary with the City,
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14 (a) (iii) the issuance of any and all approvals of
the state which are required prior thereto,
14 (a) (iv)
fees, if any,
the payment of applicable processing
14 (a) (v) approval by the city of a property
maintenance plan submitted by Developer in accordance with
Santa Monica Municipal Code section 9048.1, and
14(a) (vi) compliance by the Developer with the
provisions of section 10 of this Agreement.
14(b) City Approvals and Permits. Upon satisfaction by
Developer of the requirements set forth in Section 14(a), the city
shall promptly commence and diligently proceed to complete all
applicable City procedures and processes then uniformly in effect
to grant or issue the approvals, consents, or permits which are
necessary or reasonably desired by the Developer for the
development by the Developer of the Project and the Property in
accordance with the Project Plans and this Agreement, including,
but not limited to, the following:
14(b) (i) The processing, checking and approval of
all applications, plans, land use and zoning permits, building
plans and specifications and other plans relating to the
development of the Project and the Property which have been
filed by the Developer.
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14(b) (ii) The processing, checking and approval of
all applications for building and related mechanical,
electrical, plumbing and other ancillary permits necessary for
the completion of the development of the Project. If
requested by Developer, the City shall promptly review and
thereafter issue a separate building permit and ancillary
permits for the Hotel and the Community Center upon
Developer's submission to the City of plans which conform to
the Administrative and Technical Construction Codes of the
city (Article VIII, Chapter 1 of the Santa Monica Municipal
Code) in effect at the time of the permit application.
14 (b) (iii) The processing, checking and approval of
applications by the Developer for demolition permits and
excavation or grading permits for the Project as part of a
phased building permit for the project.
14 (c) Landmarks Commission Review. The exterior
features and treatment of the North House will be reviewed by the
Landmarks Commission in accordance with the Certificate of
Appropriateness procedures in effect under the Existing
Regulations, except that the certificate of Appropriateness shall
be effective for a period of two and one-half (2-1/2) years from
the date of issuance by the Landmarks Commission. Such review
shall not preclude the addition of the Plinth or the relocation of
the North House to the Plinth. The Developer shall comply with the
EIR mitigation measures identified in the Exhibit "C" to this
Agreement related to historic preservation. The review of the
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Landmarks Commission shall include only those elements of the
Project which are specifically set forth in this section 14(c) or
in Exhibit "c" to this Agreement.
15. Proor ietary Caoaci tv . Notwithstanding section 14 (a), the
City's obligations as provided in this Agreement shall not impair
or result in any diminution of city's rights as provided in the DDA
and the Ground Lease, and no governmental approval by City shall
satisfy or be deemed to satisfy any requirement for City's approval
as provided in the DnA or the Ground Lease.
16. periodic Review of Compliance with Aqreement.
16 (a) City Review. The city shall review this
Agreement at least once in every twelve (12) month period from the
Adoption Date.
16 (b) Required Findinqs. During each periodic review
by the City, Developer shall be required to demonstrate good faith
compliance with the terms of this Agreement. In connection
therewith, on or before July 1st of each calendar year during the
term of this Agreement, the Developer shall provide a written
report to the City in which an officer of the Developer certifies
good faith compliance by the Developer with the terms of this
Agreement during the prior calendar year, except for those areas of
non-compliance which are specifically set forth in the written
report together with the reasons advanced by the Developer for non-
compliance. If, as a result of such periodic review, the City
- 67 -
Council finds and determines, on the basis of substantial evidence,
that the Developer has not complied in good faith with the terms or
conditions of this Agreement, the city Council shall commence
proceedings to enforce, modify or terminate this Agreement.
16 (c) Evidence of Good Faith Compliance. Evidence of
good faith compliance by the Developer under this Section 16 may
include, but is not necessarily limited to, the following:
16(c) (i) Conformance with the requirements of the
Existing Regulations, except as otherwise modified by this
Agreement;
16 (c) (ii) Conformance by the Developer with the
terms and conditions of this Agreement.
16(d) Public Hearing. If the City should determine
on the basis of substantial evidence that the Developer has not
complied in good faith with the terms and conditions of this
Agreement, and further determines to proceed with modification or
termination of this Agreement in accordance with Section 16 (b), the
City shall provide written notice to the Developer of its intention
to modify or terminate this Agreement unless the Developer cures or
corrects the acts or omissions that constitute the basis of such
determinations by the city. The notice shall be delivered by the
city to the Developer in accordance with Section 27 and shall
contain:
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16(d) (i) The time and place of a public hearing to
be held by the City Council, no less than thirty (30) days
after del i very of the notice to Developer, on the
determination of the City to proceed with modification or
termination of this Agreement;
16(d) (ii)
A statement as to whether the Ci ty
proposes to modify or terminate this Agreement; and
16(d) (iii)
Any proposed modifications to this
Agreement.
If, following the conclusion of the public hearing, the
city Council determines that the Developer has not been in good
faith compliance with this Agreement and further determines that
the Developer has not cured the acts or omissions that constitute
the basis of that determination (or, if those acts or omissions
could not be reasonably remedied prior to the public hearing, that
Developer has not in good faith commenced to cure or correct such
acts or omissions prior to the public hearing or is not diligently
and continuously proceeding therewith to completion), the City
Council may take such action as it deems necessary to protect the
interests of the city pursuant to this Agreement.
17. Enforcement. subject to the provisions of Section 42,
this Agreement is enforceable by any party to it notWithstanding a
change in any applicable general or specific plan, zoning,
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subdivision or building regulations adopted by the city which alter
or amend the Existing Regulations.
18. Validity of Agreement. In any litigation concerning this
Agreement, neither party hereto shall assert as a claim or defense
the invalidity of this Agreement.
19. Default.
19(a) Developer Defaults. The happening of one or
more of the following events shall be a "Developer Defaultll under
this Agreement:
19(a) (i) the Developer shall fail to pay to the
city any amount due under Section 6(a) as and when due, and
such failure to pay continues for a period of ten (10) days
after written notice from city;
19(a) (ii) the Developer shall fail to perform or
comply in good faith with any of the other agreements, terms,
covenants or conditions of this Agreement on Developer's part
to be performed or complied with, and such nonperformance or
noncompliance shall continue for a period of thirty (30) days
after written notice from city, or, if such performance cannot
reasonably be completed within such thirty (30) day period,
Developer shall not in good faith have commenced such
performance within such thirty (30) day period or shall not
diligently and continuously proceed therewith to completion;
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19(a) (iii) a finding and determination by the city
council is made upon the basis of substantial evidence
following a periodic review under Section 16 that Developer
has not complied in good faith with the terms or conditions of
this Agreement and has not cured or corrected the act(s) or
omission(s) which were the basis for such determination;
19(a) (iv) an express repudiation, refusal or
renunciation of this Agreement is made by Developer, if the
same is in writing and signed by the Developer.
19(b)
the following
Agreement:
city Defaults.
events shall be
The happening of one or more of
a IICity Default" under this
19 (b) (i) The City shall fail to comply in good
faith with the requirements of any of the agreements, terms,
covenants or conditions of this Agreement on the City's part
to be performed or with which the city must comply and such
failure shall continue for a period of thirty (30) days after
written notice from the Developer, or, if such failure cannot
reasonably be remedied by city within such thirty (30) day
period, City shall not in good faith have commenced to cure
such failure within such thirty (30) day period or shall not
diligently and continuously proceed therewith to completion;
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19(b) (ii) an express repudiation, refusal or
renunciation of this Agreement is made by the City, if the
same is in writing and signed by the City Manager.
20. Procedure Upon Default.
20 (a) Termination by city. Subject to Section 20 (c) ,
upon the occurrence of a Developer Default, the City may terminate
this Agreement upon written notice to Developer or, in the case of
a Developer Default under Section 19(a) (iii) hereof, the City may
modify or terminate this Agreement pursuant to procedures set forth
in section 16.
20(b) Termination by Developer. Upon the occurrence
of a City Default for failure by the city to comply in good faith
with the requirements of this Agreement regarding the permitted use
and development of the Property, including without limitation, the
obligations of the city under this Agreement to review and issue
permits and approvals applied for by Developer in connection with
the development of the Project or use of the Property, Developer
may terminate this Agreement upon written notice to the City.
20(c) Remedies Cumulative. Any right or remedy of
the parties under this Agreement and any other right or remedy that
either party may have at law or equity, including specific
performance, upon the breach of any covenant, agreement, term,
provision or condition in this Agreement by the defaulting party
shall be distinct, separate and cumulative rights or remedies and
- 72 -
no one of them, whether exercised by the non-defaulting party or
not, shall be deemed to be in exclusion of any other. The
non-defaulting party may, in its discretion, exercise any and all
of its rights and remedies, at once or in succession, at such time
or times as the non-defaulting party considers appropriate.
20 (d) Cessation of Riqhts and Obliqations. Except as
otherwise provided in this Agreement, if this Agreement is
terminated on account of Developer Default or City Default, the
rights, duties and obligations of the parties hereunder shall cease
as of the date of such termination. If the City is the terminating
party, then any and all benefits, including money received by the
City, shall be retained by city.
20(e) survival of Obliqations. Notwithstanding any
other provision of this Agreement to the contrary, the Developer's
and the City's obligations to payor perform obligations accrued
prior to the date of any termination of this Agreement shall
survive any such termination and shall be enforceable after such
termination.
21. Notice of Termination. Upon termination of this
Agreement as to the Property and the proj ect, or any portion
thereof, the parties hereto shall execute an appropriate notice of
termination suitable for recording in the official records of Los
Angeles County.
- 73 -
22. Leasehold Mortqaqee's Riqht to Cure.
22 (a) If there is a Developer Default, each Leasehold
Mortgagee shall have the right to remedy such Developer Default, or
cause the same to be remedied within the period and otherwise as
provided in this Section 22. The city will accept performance by
any such Leasehold Mortgagee of any covenant, condition or
agreement on Developer's part to be performed hereunder with the
same force and effect as though performed by Developer. If
specifically set forth in a Leasehold Mortgage, Developer
authorizes a Leasehold Mortgagee to take any such action at such
Leasehold Mortgagee's option and authorizes entry upon the Property
by a Leasehold Mortgagee for such purpose.
22(b) Each Leasehold Mortgagee shall give notice to
the City specifying the name and address of such Leasehold
Mortgagee and attaching thereto a true and complete copy of the
Leasehold Mortgage held by the Leasehold Mortgagee (f1Leasehold
Mortgagee Noticell), and once such Leasehold Mortgagee Notice shall
be given, the City shall thereafter send to such Leasehold
Mortgagee a copy of each notice of default from the city to the
Developer ("Default Notice") at the same time as and whenever any
such Default Notice shall be given to the Developer addressed to
such Leasehold Mortgagee at its address last furnished to the city
by such Leasehold Mortgagee by notice to Landlord in accordance
with Section 27 herein. Any Leasehold Mortgagee which fails to
deliver to the City a Leasehold Mortgagee Notice in accordance with
this Section 22(b) shall have no rights under this Agreement.
- 74 -
22(c) In the event that the Developer does not cure
the Developer Default set forth in the Default Notice within the
applicable time periods provided in this Agreement, the City shall
send each Leasehold Mortgagee (which has furnished a Leasehold
Mortgagee Notice to the city) written notice of Developer's failure
to cure (IIFailure to Cure Noticell). Upon delivery of the Failure
to Cure Notice, each such Leasehold Mortgagee shall then have an
additional twenty (20) days to cure any monetary defaults and an
additional forty-five (45) days to cure any non-monetary defaults;
provided, however, if such non-monetary cure cannot reasonably be
completed within said time periods, the Leasehold Mortgagee shall
be entitled to such additional time as is necessary to complete the
cure if the Leasehold Mortgagee has, in good faith, commenced to
cure within said time periods and shall thereafter prosecute the
same with diligence and provided that all other obligations of
Developer under this Agreement are being performed in accordance
with the provisions of this Agreement.
22 (d) The period of time given to the Leasehold
Mortgagee to cure or commence to cure any Developer Default which
reasonably requires that said Leasehold Mortgagee be in possession
of the Property to do so, shall be deemed extended to include the
period of time reasonably required by said Leasehold Mortgagee to
obtain such possession (by foreclosure, the. appointment of a
receiver or otherwise) promptly and with due diligence; provided,
however, that during such period all other obligations of Developer
under this Agreement are being duly performed. If the Developer
Default shall be cured and the Leasehold Mortgagee shall
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discontinue such foreclosure proceedings, this Agreement shall
continue in full force and effect. If a Leasehold Mortgagee is
complying with all other obligations of Developer under this
Agreement, upon the acquisition of the leasehold estate of
Developer under the Ground Lease by such Leasehold Mortgagee or its
designee or any other purchaser at foreclosure or otherwise, this
Agreement shall continue in full force and effect.
22 (e) No Leasehold Mortgagee shall become liable
under the provisions of this Agreement unless and until such time
as it takes possession or becomes the owner of the leasehold estate
covered by its Leasehold Mortgage, and then only for obligations
arising or accruing during or with respect to the time it is in
possession or a lessee under such leasehold estate; but the
preceding portion of this sentence shall not limit or restrict in
any way the city I s authority to terminate this Agreement, as
against any Leasehold Mortgagee as well as against the Developer,
if any default hereunder (including, without limitation, any
default in the payment of any amount due) is not completely cured
within the time period allowed hereunder for such cure.
23. Duration of Agreement. This Agreement shall expire upon
the expiration of the term, or sooner termination, of the Ground
Lease (or upon expiration or termination of the DDA prior to the
date that the Ground Lease is executed and delivered and becomes
effective). After expiration or full satisfaction of this
Agreement the parties shall execute an appropriate certificate of
- 76 -
termination which shall be recorded in the official records of Los
Angeles County.
24 . Supersedure by Subsequent Laws. I f any agency other than
the City passes any law or regulation ("Lawlf) after the date of
this Agreement or takes or refuses to take any action which
prevents, precludes or impairs compliance with one or more
provisions of this Agreement, then the parties shall meet and
confer in good faith to determine the feasibility of modifying or
suspending one or more provisions of this Agreement to comply with
such new Law or to address the action or refusal to act based upon
the effect such modification or suspension would have on the
purposes and intent of this Agreement. In addition, the Developer
shall have the right to challenge the new Law or the action or
refusal to act which prevents compliance with the terms of this
Agreement, and, in the event such challenge is successful, this
Agreement shall remain unmodified and in full force and effect.
The provisions of this Section 24 shall not apply to any action or
inaction by the state or any agency thereof during the State
Approval Period, as defined in the DDA.
25. Estoppel Certificate. Either party may, at any time, and
from time to time, deliver written notice to the other party
requesting such party to certify in writing:
25 (a)
that this Agreement is in full force and
effect,
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25(b) that this Agreement has not been amended or
modified, or if so amended, identifying the amendments,
25 (c) whether or not, to the knowledge of such party,
the requesting party is in default or claimed default in the
performance of its obligations under this Agreement, and, if so,
describing the nature and amount, if any, of any such default or
claimed default, and
25 (d) whether or not, to the knowledge of such party,
any event has occurred or failed to occur which, with the passage
of time or the giving of notice, or both, would constitute a
default and, if so, specifying each such event.
A party receiving a request hereunder shall execute and return such
certificate within thirty (30) days following the receipt thereof.
The city Manager shall have the right to execute any certificate
requested by the Developer hereunder. A transferee, Leasehold
Mortgagee or other parties may rely upon information given in such
certificate.
26. Recording of Aqreement. The parties hereto shall cause
this Agreement to be recorded in the Official Records of the county
of Los Angeles. The cost, if any, of recording this Agreement
shall be borne by the Developer.
27. Notices. Any notice, demand, request, consent, approval
or communication which either party is required to or may give to
- 78 -
the other hereunder shall be in writing and shall be delivered or
addressed to the other at the address below set forth or to such
other address as either party may from time to time direct by
written notice given in the manner herein prescribed, and such
notice or communication shall be deemed to have been given or made
when communicated by personal delivery or by independent courier
service or by facsimile or if by mail on the fifth (5th) business
day after the deposit thereof in the United states Mail in Los
Angeles County, California, postage prepaid, registered or
certified, addressed as hereinafter provided.
All notices,
demands, requests, consents, approvals or communications from the
Developer to the City shall be addressed to the city at:
city of Santa Monica
1685 Main street
Santa Monica, California 90401
Attention: City Manager
Facsimile Number: (213) 394-2962
with copies to:
city Attorney
city of Santa Monica
1685 Main street
Santa Monica, California 90401
Facsimile Number: (213) 395-6727
And,
Skadden, Arps, Slate, Meagher & Flom
300 South Grand Avenue
Los Angeles, California 90071-3144
Attention: Richard S. Volpert, Esq.
Facsimile Number: (213) 687-5600
All
notices,
demands,
requests,
consents,
approvals
or
communications from the City to the Developer shall be addressed to
the Developer at:
- 79 -
Pacific Beach Development Limited Partnership
c/o Michael's Restaurant
1147 Third Street
Santa Monica, California 90403
Attention: Michael Mccarty
Facsimile Number: (213) 458-3922
with a copy to:
Lawrence & Harding, P.C.
1250 sixth street, suite 300
Santa Monica, California 90401
Attention: Richard A. Lawrence, Esq.
Facsimile Number: (213) 458-1959
28. Entire Aqreement. This Agreement sets forth all of the
agreements, conditions and understandings between the City and the
Developer relative to the Property and the project (except for the
DDA, the Ground Lease and the Community Center operating Agreement)
and
there
are
no
promises,
agreements,
conditions
or
understandings, oral or written, expressed or implied, between them
other than as set forth or as referred to herein, other than in the
DDA, the Ground Lease and the Community Center Operating Agreement.
29. No Oral Modification. No statement, action or agreement
hereafter made shall be effective to change, amend, waive, modify,
discharge, terminate or effect an abandonment of this Agreement in
whole or in part unless such statement, action or agreement is in
writing and signed by the party against whom such change,
amendment,
waiver,
modification,
discharge,
termination or
abandonment is sought to be enforced.
30. Table of Contents and section Headinqs.
The table of
contents and section headings are inserted herein only for
- 80 -
convenience and are in no way to be construed as part of this
Agreement, or as indicative of the meaning of the provisions of
this Agreement or the intention of the parties, or as a limitation
on the scope of the particular sections to which they refer.
31. Severability: Invalidity of Particular Provisions. If
any term or provision of this Agreement or the application thereof
to any person or circumstances shall, to any extent, be invalid or
unenforceable, the remainder of this Agreement, or the application
of such term or provision to persons or circumstances other than
those to which it is held invalid or unenforceable, shall not be
affected thereby, and each other term and provision of this
Agreement shall be valid and enforced to the fullest extent
permitted by law.
32. No Partnership or Joint Venture. Nothing in this
Agreement shall be deemed to create a partnership or joint venture
between the City and the Developer or to render either party liable
in any manner for the debts or obligations of the other.
33. Attorneys I Fees. If any suit shall be brought because of
breach or alleged breach of any covenant or condition herein
contained on the part of the Developer or the City to be kept or
performed, the prevailing party shall be entitled to reasonable
attorneys' fees in addition to court costs and any and all other
costs recoverable in said action. Such attorneys' fees shall be
paid whether or not such action is prosecuted to judgment. In any
case where this Agreement provides that the city or the Developer
- 81 -
is entitled to recover attorneys' fees from the other, the party so
entitled shall be entitled to recover an amount equal to the fair
market value of legal services provided by attorneys (authorized to
provide such services) employed by it as well as any attorneys'
fees actually paid by it to third parties in connection with such
action.
34. Exhibits. All exhibits attached hereto and/or referred
to in this Agreement are incorporated herein as though set forth in
full.
35. Construction. The parties agree that each party and its
counsel have reviewed and revised this Agreement and that any rule
of construction to the effect that ambiguities are to be resolved
against the drafting party shall not apply in the interpretation of
this Agreement or any amendments or exhibits hereto.
36. Governing Law. This Agreement shall be governed
exclusively by the provisions hereof and by the laws of the state
of California.
37. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, and such
counterparts shall constitute but one and the same instrument.
38. Binding Effect. It is intended and determined that the
provisions of this Agreement shall constitute covenants which shall
run with the land comprising the Property for the benefit thereof
- 82 -
and that the burdens and benefits thereof shall bind and inure to
the benefit of all successors-in-interest to the parties hereto.
39. Aqreement to Cooperate. In the event of any legal action
instituted by a third party or other governmental entity or
official challenging the validity of any provision of this
Agreement, the parties hereby agree to cooperate in defending said
action: provided, however, each party shall retain the right to
pursue its own independent legal defense.
40. state Mandated Revisions. In the event that any
applicable state agency or commission requires revisions to this
Agreement or the Project Plans as a condition to granting any state
approvals, permits or consents which Developer may be required to
obtain under this Agreement or the DDA, the City shall review and
not unreasonably withhold or delay its consent to such revisions:
provided, however, the City shall have no obligation to approve any
revisions which would: (i) increase the maximum Floor Area of the
Hotel and the Community Center, the Building Height set forth in
section 3(c) of this Agreement or the maximum parcel coverage set
forth in Section 3 (d) of this Agreement or (ii) decrease the
Developer's obligations pursuant to this Agreement.
41. No Third Party Beneficiary. Nothing in this Agreement
shall create any rights, as a third party beneficiary or otherwise,
in any person or entity not a party to this Agreement: provided,
however, any member of the general public shall have the right to
enforce Sections 43 and 44.
- 83 -
42. Limitation on Developer r s Riqht of Enforcement.
Developer recognizes and acknowledges that the provisions of
Sections 43 and 44 of this Agreement are solely for the benefit of
members of the general public. Developer hereby waives any and all
rights which it may presently have or acquire in the future to
enforce the provisions of sections 43 and 44 of this Agreement.
43. Revenue Targetinq. For the first ten (10) years
following the Commencement Date (as defined in the Ground Lease),
the city shall deposit all Base Rent and Percentage Rent (as
defined in the Ground Lease) received by the City under the Ground
Lease into the city's Beach Fund to be used for any operational,
maintenance and capital expenditures for the Santa Monica State
Beach for which Beach Fund revenues may be utilized under state
law. In connection with any capital expenditures of Beach Fund
revenues received by the city under the Ground Lease, which are
permitted under state law, the City shall give high priority to the
construction of five ( 5 ) paddle tennis courts for use by the
general public to be located on Santa Monica state Beach, and shall
additionally consider and evaluate all capital projects to be
identified through the improvement plan for the Santa Monica State
Beach which is being prepared by POD/Sasaki for submission to the
city council for its review and approval.
44. Transient Occupancy Tax:. For the first ten (10) years of
the operation of the Hotel, the city shall appropriate the
transient occupancy tax collected on the Hotel pursuant to Santa
- 84 -
Monica Municipal Code Section 6600 et seq. and any successor
thereto in the following manner:
44 (a) Twenty-five percent (25%) shall be appropriated
by the City each year for unrestricted use by the Santa Monica Bay
Restoration Project or a similar organization or dedicated fund
pertaining to the restoration of Santa Monica Bay.
44 (b) Twenty-five percent (25%) shall be appropriated
by the City each year for maintenance, security and capital
improvements in parks located in the City.
44 (c) Twenty-five percent (25%) shall be appropriated
by the city each year in the annual city budget to reimburse the
School District for costs associated with student recreational,
artistic and athletic costs, including, without limitation, staff,
materials and transportation costs. The School District shall
spend at least twenty-five percent (25%) of this sum to pay for
costs associated with School District programs and events located
at the Community Center. All other funds not so expended shall be
used by the School District in its sole and absolute discretion to
pay for student recreational, artistic and athletic costs
associated with operation of the School District.
44 (d) The ten (10) year limit on all annual transient
occupancy tax allocations under this section 44, may be extended by
a majority vote of the City Council.
- 85 -
45. Voter Approval.
This Agreement shall automatically become effective, and
the rights and obligations of the city and Developer hereunder
shall fully and automatically vest, no later than thirty (30) days
after the Adoption Date pursuant to California Elections Code
section 4050. As discussed in Section 12 above, development of the
Property and the Project shall not be governed by any Subsequent
Code Changes, including but not limited to any land use initiatives
which may be adopted by the City's electorate after the Adoption
Date, such as the "Save Our Beachll and "Santa Monicans for a
Livable Environment" Intiatives.
Notwi thstanding the foregoing, the City Council shall
place on the November 6, 1990 Regular Municipal Election ballot a
measure pursuant to California Elections Code Section 4017 calling
for a direct vote by the city's electorate on the Project. This
measure shall pose the following question to the voters:
Shall the ordinance approving the Development
Agreement between the City of Santa Monica and
Pacific Beach Development Limited Partnership
for development of a hotel and public
community center at 415 Pacific Coast Highway
be repealed by the people of the City of Santa
Monica?
If the above council-sponsored measure is approved by a majority
vote at the November 6, 1990 Regular Municipal Election, then this
Agreement shall thereupon automatically and immediately terminate
and be of no further force or effect.
- 86 -
IN WITNESS WHEREOF, the parties hereto have duly executed
this Agreement as of the day and year first above written.
CITY:
CITY OF SANTA MONICA:
By:
JOHN JALILI
Its City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
Robert M. Myers, city Attorney
DEVELOPER:
PACIFIC BEACH DEVELOPMENT
LIMITED PARTNERSHIP,
a California limited partnership
By: PACIFIC BEACH DEVELOPMENT
CORPORATION,
a California corporation
Its sole General Partner
By:
MICHAEL L. McCARTY
President of PACIFIC BEACH
DEVELOPMENT CORPORATION
RAL: ncv: Rl12-u02.223
lnm:08/02t90
- 87 -
EXHIBIT uA"
DEVELOPMENT AGREEMENT between THE CITY OF SANTA MONICA
and SANTA MONICA BEACH DEVELOPMENT LIMITED PARTNERSHIP
Leqal Descrintion of the ProDertv
PARCEL 1:
THAT PORTION OF THE RANCHO BOCA DE SANTA MONICA, IN THE CITY OF
SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DESCRIBED
AS FOLLOWS:
BEGINNING AT A POINT IN THE SOUTHWESTERLY LINE OF THE 20 FOOT STRIP
OF LAND CONVEYED TO THE CITY OF SANTA MONICA, FOR ROAD PURPOSES BY
DEED RECORDED IN BOOK 4530 PAGE 152 OF DEEDS, RECORDS OF SAID
COUNTY, DISTANT NORTHWESTERLY 2045 FEET FROM THE INTERSECTION OF
SAID SOUTHWESTERLY LINE WITH THE SOUTHWESTERLY PROLONGATION OF THE
NORTHWESTERLY LINE OF MONTANA AVENUE, AS SAID AVENUE IS SHOWN ON
MAP OF THE CITY OF SANTA MONICA, RECORDED IN BOOK J 9 PAGES 45
THROUGH 51 INCLUSIVE OF MISCET.T~EOUS RECORDS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY: THENCE NORTHWESTERLY ALONG THE
SOUTHWESTERLY LINE OF SAID 20 FOOT STRIP OF LAND, 30 FEET, THENCE
SOUTHWESTERLY AT RIGHT ANGLES, TO SAID SOUTHWESTERLY LINE, 190 FEET
TO THE LAND DESCRIBED AS THE LINE OF MEAN HIGH TIDE OF THE PACIFIC
OCEAN, IN ORDINANCE NO. 188 (COMMISSIONER'S SERIES) OF THE CITY OF
SANTA MONICA, ENTITLED "AN ORDINANCE FIXING AND DETERMINING THE
LINE OF MEAN HIGH TIDE OF THE PACIFIC OCEAN, IN THE CITY OF SANTA
MONICA," ADOPTED JULY 25, 1921 AND RECORDED IN BOOK 431 PAGE 90,
OFFICIAL RECORDS OF SAID COUNTY; THENCE SOUTHEASTERLY ALONG THE
SAID LAST MENTIONED LINE, 30 FEET; THENCE NORTHEASTERLY, 190 FEET
TO THE POINT OF BEGINNING.
PARCEL 2:
THAT PORTION OF THE RANCHO BOCA DE SANTA MONICA, IN THE CITY OF
SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DESCRIBED
AS FOLLOWS:
BEGINNING AT A POINT IN THE SOUTHWESTERLY LINE OF THE 20 FOOT STRIP
OF LAND CONVEYED TO THE CITY OF SANTA MONICA, FOR ROAD PURPOSES BY
DEED RECORDED IN BOOK 4530 PAGE 152 OF DEEDS, RECORDS OF SAID
COUNTY, DISTANT NORTHWESTERLY 2075 FEET FROM THE INTERSECTION OF
SAID SOUTHWESTERLY LINE WITH THE SOUTHWESTERLY PROLONGATION OF THE
NORTHWESTERLY LINE OF MONTANA AVENUE, AS SAID AVENUE IS SHOWN ON
MAP OF THE CITY OF SANTA MONICA, RECORDED IN BOOK 39 PAGES 45
THROUGH 51 INCLUSIVE OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE
EXHIBIT A
PAGE 1 OF 3
COUNTY RECORDER OF SAID COUNTY: THENCE NORTHWESTERLY ALONG SAID
SOUTHWESTERLY LINE OF SAID 20 FOOT STRIP OF LAND 30 FEET; THENCE
SOUTHWESTERLY, AT RIGHT ANGLES TO SAID SOUTHWESTERLY LINE, 190 FEET
TO THE LINE DESCRIBED IN THE LINE OF MEAN HIGH TIDE OF THE PACIFIC
OCEAN IN ORDINANCE NO. 188, (COMMISSIONER'S SERIES) OF THE CITY OF
SAND MONICA, ENTITLED If AN ORDINANCE FIXING AND DETERMINING THE LINE
OF MEAN HIGH TIDE OF THE PACIFIC OCEAN, IN THE CITY OF SANTA
MONICA" ADOPTED JULY 25, 1921 AND RECORDED IN BOOK 431 PAGE 90,
OFFICIAL RECORDS OF SAID COUNTY, THENCE SOUTHWESTERLY ALONG THE
SAID LAST MENTIONED LINE, 30 FEET, THENCE NORTHEASTERLY 190 FEET
TO THE POINT OF BEGINNING.
PARCEL 3:
THAT PORTION OF THE RANCHO BOCA DE SANTA MONICA, IN THE CITY OF
SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DESCRIBED
AS FOLLOWS:
BEGINNING AT A POINT IN THE SOUTHWESTERLY LINE OF THE 20 FOOT STRIP
OF LAND CONVEYED TO THE CITY OF SANTA MONICA, FOR ROAD PURPOSES,
BY DEED RECORDED IN BOOK 4530 PAGE 152, OF DEEDS, RECORDS OF SAID
COUNTY, DISTANT THEREON NORTHWESTERLY 2105.00 FEET FROM ITS
INTERSECTION WITH THE PRODUCED NORTHWESTERLY LINE OF MONTANA
AVENUE, AS PER MAP OF THE CITY OF SANTA MONICA, RECORDED IN BOOK
39 PAGES 50 AND 51 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY, THENCE NORTHWESTERLY ALONG SAID
SOUTHWESTERLY LINE, 60.00 FEET: THENCE SOUTHWESTERLY, AT RIGHT
ANGLES TO SAID SOUTHWESTERLY LINE, 190 FEET TO THE LINE DESCRIBED
AS THE LINE OF MEAN HIGH TIDE OF THE PACIFIC OCEAN, IN ORDINANCE
NO. 188 (COMMISSIONER'S SERIES) OF THE CITY OF SANTA MONICA,
ENTITLED rt AN ORDINANCE FIXING AND DETERMINING THE LINE OF MEAN HIGH
TIDE OF THE PACIFIC OCEAN, IN THE CITY OF SANTA MONICA" ADOPTED
JULY 25, 1921 AND RECORDED IN BOOK 431 PAGE 90, OFFICIAL RECORDS
OF SAID COUNTY, THENCE SOUTHEASTERLY ALONG THE SAID LAST MENTIONED
LINE, 60.00 FEET, THENCE NORTHEASTERLY, 190 FEET TO THE POINT OF
BEGINNING.
PARCEL 4:
THOSE PORTIONS OF THE RANCHO SAN VICENTE Y SANTA MONICA, AND OF THE
RANCHO BOCA DE SANTA MONICA, IN THE CITY OF SANTA MONICA, COUNTY
OF LOS ANGELES, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE SOUTHWESTERLY LINE OF THE 20 FOOT STRIP
OF LAND CONVEYED TO THE CITY OF SANTA MONICA, FOR ROAD PURPOSES,
BY DEED RECORDED IN BOOK 4530 PAGE 152 OF DEEDS, RECORDS OF SAID
COUNTY, DISTANT THEREON NORTHWESTERLY 1415 FEET FROM ITS
INTERSECTION WITH THE PRODUCED NORTHWESTERLY LINE OF MONTANA
AVENUE, AS SHOWN ON THE MAP OF THE TOWN OF SANTA MONICA, RECORDED
IN BOOK 39 PAGES 50 AND 51 OF MISCELLANEOUS RECORDS, IN THE OFFICE
EXHIBIT A
PAGE 2 OF 3
OF THE COUNTY RECORDER OF SAID COUNTY; THENCE NORTHWESTERLY ALONG
SAID SOUTHWESTERLY LINE, 630 FEET; THENCE SOUTHWESTERLY ALONG A
LINE, AT RIGHT ANGLES, TO SAID SOUTHWESTERLY LINE, 1.90 FEET TO THE
LINE DESCRIBED AS THE LINE OF MEAN HIGH TIDE OF THE PACIFIC OCEAN,
IN ORDINANCE NO. 188, (COMMISSIONER'S SERIES) OF THE CITY OF SANTA
MONICA, ENTITLED "AN ORDINANCE FIXING AND DETERMINING THE LINE OF
MEAN HIGH TIDE OF THE PACIFIC OCEAN, IN THE CITY OF SANTA MONICA,"
ADOPTED JULY 25, 1921 AND RECORDED IN BOOK 431 PAGE 90, OFFICIAL
RECORDS OF SAID COUNTY, THENCE SOUTHEASTERLY ALONG SAID LAST
MENTIONED LINE, 612.75 FEET TO A RADIAL LINE OF THE CURVED
SOUTHWESTERLY LINE OF SAID 20 FOOT STRIP OF LAND, WHICH PASSES
THROUGH THE POINT OF BEGINNING, THENCE NORTHEASTERLY 190 FEET TO
THE POINT OF BEGINNING.
EXHIBIT A
PAGE 3 OF 3
EXHIBIT "BII
DEVELOPMENT AGREEMENT between THE CITY OF SANTA MONICA
and SANTA MONICA BEACH D~LOPMENT LIMITED PARTNERSHIP
Pro;ect Plans
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EXHIBIT "CII
DEVELOPMENT AGREEMENT between THE CITY OF SANTA MONICA
and SANTA MONICA BEACH DEVELOPMENT LIMITED PARTNERSHIP
Mitiaation Measures
Earth
~
A comprehensive geotechnical report shall be prepared
specifically for the Property which includes provisions for
excavation and the correction of potential geologic hazards.
Such report shall also include an analysis of the bluff
immediately northeast of the Property to assess its factors
of safety against gross and surficial failure, and to
recommend appropriate setback distances if indicated.
.
During construction, all grading will be carefully observed,
mapped and tested by the ProJect eng~neer. All grad~ng will
be performed under the supervislon of a licensed engineering
geologist and/or soils eng~neer ~n accordance with applicable
provisions of the Santa Monica Municipal Code to the
satisfaction of the City Bu~lding and Safety Department.
.
The Project shall be des~gned and constructed in compliance
with all applicable specifications of the building codes and
regulations of the City of Santa Monica,
During Project construction, liquefaction potential shall be
eliminated to the satisfaction of the City Building and Safety
Division. Examples of measures to mitigate liquefaction
include excavation and recompaction of soil materials, soil
treatment with dynamic compaction, installation of dewatering
devices to relieve pore pressure, grout injection, or
installation of reinforclng stone columns.
· Prior to the Project construction, dewatering and pumping
techniques for both the upper unconfined aqulfer and lower
confined aquifer shall be approved by the City Building and
Safety Divlsion.
Air ouality
· The California Health and Safety Code requlres that mitigation
measures be undertaken to minimize dust generation.
Construction-related dust emissions shall be reduced
approximately 50 percent by watering exposed surfaces durIng
clearing, grading, earthmoving and other site preparation
activities. Short-term impacts due to grading and
construction equipment could be minimlzed by the following
measures. These measures shall be established as conditions
of Project approval and contalned in all applicable contracts
between Developer and contractors.
- 2 -
Ground wetting shall be required (SCAQMD Rule 403 for
dust control) during grading and construction.
Contractors will water expose surfaces in late morning
and at the end of the day. The frequency of watering
will increase if wind speeds exceed 15 mph,
Contractors shall cover any stockpiles of soil, sand and
similar material.
Construct1on equipment shall be shut off to reduce 1d11ng
when not in direct use.
Low sulfur fuel shall be used for construction equipment,
Contractors will discontinue construction activities
during second stage smog alerts within the Northwest
Coastal area as identified by the South Coast Air Quality
Management District, or if such designation ceases to
exist, another area of similar S1ze and location.
Any stock piles of excavated soil shall be located at least
50 feet adjacent residential property.
Loading of haul trucks shall take place at least 50 feet from
the north or south Property lines of the Property.
- 3 -
· Construction of temporary barriers and screening of at least
eight (8) feet in height shall be erected to eliminate the
adverse effects of windblown excavated matter.
· Prior to issuance of demolition permits, Developer is required
to certLfy that should asbestos be found in existing
structures, a licensed certified contractor specia11z1ng in
asbestos removal shall perform the required work in accordance
with California OSHA standards.
The project shall comply with SCAQMD's Regulation 15, adopted
December 11, 1987,
Vents for all subterranean parking facilities shall be located
at least 50 feet from adJacent residential property, Where
feasible, the location of the vents shall take into account
the predominant prevailing wind direction to minimize impacts
on adjacent residences,
Vents for all kitchen areas shall be located as far away as
possible from adjacent residential property. Where feasible,
the location of the vents shall take into account the
predominant prevailing wind direction to minimize impacts on
adJacent residences. A charcoal or similar air f1ltration
system will be required to remove odors from a1r vents. Vents
for the Hotel Restaurant shall be located on the top of the
Hotel roof. Vents for the Beach Cafe shall be located on the
- 4 -
south side of the North House away from the residentlal area
and as high up on the North House facade as can be
accommodated within historic preservation practices.
· All fireplace chimneys shall be equipped with spark
inhibitors, Fireplace designs shall be of a type that
facilitates fast burn rates and high intensity flames,
particularly through the use of hearth insert type equipment,
water/Hydrology
· High points in pavement grade shall be designed to prevent
runoff from the Property and Pacific Coast Highway from
entering the underground parking facility.
· Project drainage shall be graded directly toward the beach or
to local catch basins where non-closable grate drains shall
be placed.
· Grate openings shall be of a size to accommodate 1,5 times the
amount of water that the outflow pipe can convey, The outflow
pipe shall be composed of polyvinyl chloride ("PVC") or other
non-caustic pipe,
· If the PVC-type pipe is exposed to additional weight or load,
the pipe shall be encased to prevent failure. The outlets for
- 5 -
drainage pipes shall include a rock or concrete splash
dissipator pad to prevent scouring,
The proj ect drainage plan shall be submi tted to the City
Engineer for review and approval, prior to development of any
drainage improvements.
Any proposed drainage improvements shall be developed to the
satisfaction of the City Engineer and shall meet applicable
requirements from other responsible agencies,
Noise
A construction period mitigation plan shall be prepared by
Developer for approval by the Department of General services
prior to the issuance of a building permit, As applicable
this plan shall:
Specify the names, addresses, telephone numbers and
business license numbers of all contractors and sub-
contractors as well as Developer and the architect;
Describe how demolition of any existing structures 15 to
be accomplished;
- 6 -
Specify the specific types of equipment to be used and
their approximate location. Locations for compressors
and pumps should be specifically located,
Indicate where any cranes are to be located for
erection/construction:
Describe how much of the public street, alleyway or
sidewalk is proposed to be used in conjunction with
construction:
Set forth the extent and nature of any pile-drlv~ng
operations:
Describe the length and number of any tiebacks which must
extend under the Property of other persons:
Specify the nature and extent of any dewatering and its
effects on adjacent buildings:
Describe anticipated construction-related truck routes,
number of truck trips, hours of haullng and parking
location;
Specify the nature and extent of any helicopter hauling:
- 7 -
state whether any construction activity is proposed
beyond hours normally permitted for such activity under
the applicable Santa Monica Noise Ordinance~
Describe any proposed construction noise mitigatlon
measures.
Describe construction period security measures, including
any fencing, lighting and security personnel~
Provide a drainage plan;
Provide a construction period parking plan which shall
minimize use of public streets for parking:
List a designated on-site construction manager~
A sign shall be posted on the Property in a manner
consistent with the publlC hearing sign requlrements
which shall identify the address and phone number of
Developer for the purposes of responding to questions
and complaints during the constructlon period. said sign
shall also indicate the hours of perrnlss1ble construction
work.
A copy of the construction mltigation conditions shall
be posted in an easily vlsible and accessible locat~on
- 8 -
at all times during construction on the Property, The
pages of the copy of construction mitigation conditions
shall be laminated or otherwise protected to ensure
durability of the copy.
· The Project shall comply with applicable city noise
regulations specified in the Santa Monica Noise Ordinances
(Santa Monica Municipal Code Chapter 3A, Ordinance Numbers
1406 CCS and 1458 CCS).
During construction, the Project contractors shall muffle and
shield intakes and exhaust, shroud and shield impact tools,
and use electric-powered rather than diesel-powered
construction equipment, as feasible.
Temporary walls and noise barriers shall be placed around the
Property and/or locations of noisy activities to block and
deflect the noise from the adjacent residential properties.
Developer shall use a plle drill~ng wlth tie-down anchor
method to minimize noise ~mpacts,
Where construction is taking place directly adj acent to a
residential property, portable noise curtains or panels to
contain noise from powered tools such as impact wrenches shall
be used.
- 9 -
Truck deliveries and trash pickups shall be prohibited between
the hours of 7:00 P.M. and 7:00 A.M.
· The level of noise from rooftop mechanical equipment shall
conform to the provisions of the Santa Monica Noise Ord~nance
for Zone I. Should the equipment exceed the Noise Ordinance
thresholds (i.e, a median noise level of 50 DBA from 10 pm to
12 am and 60 DBA from 7 am to 10 pm) at the Property line,
then the rooftop mechanical equipment shall be fully enclosed
or partially enclosed (depending on the equipment) in a manner
that will achieve the Zone I noise levels at the Property
line.
· Parking garage ramp surfaces shall be of the type to minimize
the potential for tire squeal.
· windows and walls on the north side of the Community Center
shall have a sound transMlssion class rating sufficient to
eliminate the transmission of any loud or amplified sounds
exceeding the sound level limits established in the City of
Santa Monica Noise Ordinance for Noise Zone I,
An 8-foot wall shall be constructed along the northern
Property line, or other n01se attention measures should be
implemented, to reduce sounds from the outdoor dining area of
the Beach Cafe and from the Children's Play Area, should these
activities remain in their present location.
- 10 -
- All state and local standards for exterior and interior noise
exposure shall be met for the Project. Prior to issuing
building permits, Developer shall submit evidence, to the
satisfaction of the City, that all Project land uses will meet
applicable exterior and interior noise standards. If
determined necessary by the City, Developer may be requlred
to prepare a detailed acoustical assessment indicating
mitigation measures necessary to achieve acceptable exterior
and lnterior noise levels on-slte, to the satisfaction of the
City,
Liqht and Glare
· Developer shall prepare a lighting and building materials plan
for approval by the city's Architectural Review Board,
project lighting and building materials shall be built and/or
installed in accordance with City of Santa Monica ordlnances,
standards and applicable requirements, Measures to reduce
adverse light and glare impacts to acceptable levels lnclude
the following:
Where appropriate, the Project shall utilize lightly
tinted glass to decrease reflectivity and to reduce the
emission of ambient interior light.
- 11 -
Exterior surfaces shall be of a color, material, and
texture to reduce daytime glare,
Foliage and landscaping shall be placed wherever possible
to limit exposure to Project lighting and to decrease the
reflectivity of surfaces.
Outdoor lighting shall be shielded and directed on-site
and downward.
Outdoor lighting shall be reduced or softened after peak
hours, especially in the areas of the Hotel Pool, the
garden areas of the Hotel and Community Center and the
outdoor dining areas of the Hotel Restaurant and the
Beach Cafe. Outdoor lighting of the Hotel and the
Community Center shall be restricted to security lighting
between the hours of 12: 00 AM and 6: 00 AM.
Identification signs for the ProJect shall be restricted
to the Project I s eastern facade along Pacific Coast
Highway with the exception of signage along the beachside
that may be necessary for the community Center and the
PubllC Beach Facillty.
Consideration should be given to reduction or ellmination of
visible illumination sources from the Projects. northern and
southern facades. Restrictions on lighting emitted from the
southern facade of the Project should be requ1red as part of
- 12 -
conditions of approval of the Project. Light emltted from the
northern facade should be shaded (by window treatment) or
otherwise obstructed with landscaping along northern walls.
Shade/Shadow
No measures are necessary or recommended to mitigate shadow
impacts.
Employment, Housing and population
No mitigation measures are recommended for employment, population
or housing impacts as no significant adverse impacts are
anticipated,
Land Use
· The project shall include the planting area along the northern
Property line as set forth in Section 3(g) of the Development
Agreement, and maintain the building setback along the north
Property line.
No outslde actlvities shall be allowed wlthln the north slde
yard setback.
Riqht-of-way and Access
- 13 -
Developer shall closely coordinate final design plans with the
City's Traffic Engineer to insure that no unacceptable access
or on-site circulation impacts occur.
· In order to safely accommodate left-turn movements from
northbound Pacific Coast Highway into the project, a left-turn
storage lane serving the Project access way shall be striped
within the existing painted median on Pacific Coast Highway,
subject to the Developer obtaining all requisite permits and
approvals from the State Department of Transportation
("CalTransll) and any other applicable governmental agencies.
· Access to the beach areas would be improved for handicapped
and elderly beach users by the installation of a plank
boardwalk from the Property to the beach area in accordance
with the requirements of Title 24 of California Code of
Regulations,
Portions of the bike path shall be resited and reconstructed
by Developer to accommodate the needs of the proj ect and
bicyclists.
Developer shall comply with all State and City standards,
codes and ordinances in the provision of access and parking
to the general public, the handicapped and Hotel guests.
- 14 -
· Vehicular access would be improved and made safer with the
installation of a traffic signal adjacent to the entranceway
to the proposed Project. Subject to the Developer obtaining
all requisite permits and approvals from CalTrans and any
other applicable governmental agencies, an acceleration lane
shall be provided in accordance with CalTrans specifications
in the event a signal is not installed at the Project access
point onto Pacific Coast Highway,
Appropriate signage shall be installed to prevent pedestrian
crossing from the east side of Pacific Coast Highway. Such
legally-permitted pedestrian crossings would not be desirable
given the proposed signalization of the Project driveway, its
synchronization with signalized intersect10ns along Pacific
Coast Highway, and the desire to maintain smooth traffic flow
on Pacific Coast Highway.
Subj ect to Developer obtaining all requisi te perm~ ts and
approvals from CalTrans and any other applicable governmental
agencies, the Project driveway shall be widened to provide two
outbound lanes; one exclusive left-turn lane and one exclusive
right-turn lane. A minimum of 30 feet is necessary to
accommodate both outbound lanes and inbound lanes.
Subject to Developer obtaining all requisite penuts and
approvals from CalTrans and any other applicable governmental
agencies, A prec~se s1gnal coordination plan shall be prepared
- 15 -
and implemented at the time of design and installation of the
proposed signal at the Project access point onto Pacific Coast
Highway. This plan shall include synchronizing the Pacific
Coast Highway signals at Channel/Entrada/Chautauqua, the
Project driveway and the California Incline. The plan shall
be based on and tailored to the actual traffic volumes
existing at that time. All costs of the plan preparation and
implementation shall be borne by the Developer.
Public Access
Because no adverse public access impacts are anticipated, no
Project-specific mitigation measures are required.
Traffic and Parkinq
· Subject to Developer obtaining all requisite permits and
approvals from CalTrans and any other applicable governmental
agencies, a three-phase traffic signal shall be installed at
the proj ect access point onto Pacific Coast Highway I with
protected left-turn phasing for left-turns from northbound
Pacific Coast Hlghway ~nto the Project. Costs for
implementation of such measures shall be borne by Developer.
Subject to Developer obtaining all requisite permits and
approvals from CalTrans and any other applicable governmental
agencies, an acceleratlon lane shall be provided ~n accordance
with CalTrans specifications in the event a signal is not
- 16 -
installed at the Project access point onto Pacific Coast
Highway,
The Project shall implement a Transportation Demand Management
program to reduce Project-generated traffic. No Hotel
Restaurant employee shall be required or allowed to report to
work during the week between the hours of 3: 30 p. m. to
6:30 p.m.
Developer shall provide sufficient parking to meet the peak
parking demand of the proposed uses and shall replace the 176
existing beach parking lot spaces.
Developer shall establish preferential parking locations in
the Subterranean Parking Area for vanpools and carpools.
Developer shall establish and operate a ride-sharing program
for Project employees. Appropriate signage shall be posted
by the Developer on the Project advising Project employees of
this program.
· Service deliveries to the Project shall not be permitted daily
during the hours of 7:]0 a.m, to 9:30 a.m. and 4:00 p.m. to
6:00 p.m.
Developer shall include in written materials for the Banquet
Faci11ties and Hotel Meeting Rooms recommendat1ons that
- 17 -
potential users maximize vehicle occupancy.
To mitigate parking and traffic impacts, the Developer shall
comply with the following conditions within six (6) months of
issuance of a certificate of Occupancy for the Hotel:
Arrange for appropriate van or bus service to and from
Los Angeles International Airport for Hotel guests,
Provide local public transit displays at the Project
identifying routes and schedules along with promotlonal
information concerning destinatlons within
walking/transit/biking distance of the Project.
Prov ide maps, at no cost to Hotel guests,
locations of restaurants, shopping areas,
facilities, and pier activities, that can be
easily from the Project by walking.
showing
beach
reached
Provide a shuttle system serving the major areas of Hotel
user destinatlons in the City, The shuttle route shall
be set by the City and include downtown Santa Monica,
Santa Monica Pier, Main Street and the Hotel. The
shuttle shall be available for use by Hotel guests and
the general pUblic, and shall operate on a schedule
established by the City for at least eight hours dally,
with the understanding that the eight-hour mlnimum period
- 18 -
can be broken into two (2) parts to coincide with peak
Hotel demand. The shuttle vehicle shall have a
distinctive character that would tend to promote tourism
in general. The shuttle bus shall begin operation when
the Hotel reaches an initial seventy percent (70%)
occupancy rate for three (3) consecutive months, or
within two (2) years from issuance of the Certificate of
Occupancy, whichever is sooner. The City shall consider
requirements that future overnight visitor accommodations
join in supporting a similar shuttle system with shared
expenses, Developer may sat1sfy its obligat1on under
this paragraph by participating in a shuttle system
operated by or on behalf of other overnight visitor
accommodations in the City so long as such shuttle
service meets all of the requirements of this paragraph,
In lieu of requiring the Developer to provide shuttle
service under this paragraph, the City reserves the right
to unilaterally require annual payment by Developer to
the City of an equitable portion of the annual operating
costs (including replacement reserves and depreciation)
of a City-sponsored shuttle system in the City, provided
that any such system must satisfy all of the requirements
of this paragraph and the annual payment to the City by
the Developer must not exceed the annual cost to
Developer of providing its own shuttle service,
- 19 -
Meeting/banquet schedules shall be regulated to group
sizes that can be accommodated within on-site parking
capacity.
utilities
WATER
· In accordance with the requirements of all applicable City
Ordinances, Developer shall incorporate water saving devices
and techniques into the design and operation of the Project.
Water conservation measures include, but are not limited to,
the following:
Installation of ultra low-flow toilet fixtures using no
more than 1.6 gallons per flush.
Installation of low-flow showerheads using no more than
3.0 gallons per minute,
Landscaping with water conservative/drought-tolerant
species (lIxeriscapell).
Developer shall install a water recycling system with~n the
laundry facil1ties of the Hotel.
provisions for meeting fire flow requirements and any
improvements to on-site water lines shall be incorporated into
- 20 -
the final Project design prior to issuance of a bUlld1.ng
permit. Improvement costs shall be borne by Developer.
SEWER
· Developer shall comply with the provisions of current or
future ordinances regarding sewer capacity allotment in the
City of Santa Monica.
· Prior to issuance of a certificate of occupancy, Developer
shall present documentatlon to the General SerV1.ces Department
certifying that existing Santa Monlca occupancies with toilets
installed prior to 1978 have been retrofitted with ultra low-
flow toilets (1.6 gallons or less per flush) such that
development of the Project will not result in a net increase
in wastewater flows. Flow from existing occupancies which
will be removed as part of the new development may be deducted
from flow attributable to the new development. Flow
calculations for new development and existing occupancies
shall be consistent with guidelines developed by the General
Services Department.
Developer will be required to pay a sewerage facilities charge
to the City before a permit can be issued to connect to the
sewer pursuant to Sect10n 7190 of Ord1nance 1451.
SOLID WASTE
- 21 -
-
Developer shall participate in the
program in effect on the Adoption
available to commercial developments
limited to, the following:
Santa Monica Recycle
Date. The programs
include, but are not
Trash bins should be segregated with regard to recyclable
or non-recyclable designation.
Glass and newspapers should be further segregated from
the Project's waste stream, for eventual collection by
municipal employees.
Nothing in this provision is intended to limit or excuse
compliance by Developer with any Subsequent Code Changes
adopted by the City related to solid waste disposal,
· Trash receptacles sufficient in size and number to contain the
trash generated by the uses of the Project shall be provided,
Outdoor trash receptacles must be shielded from general public
view on at least three sides by impact-resistant walls on
three sides not less than five or more than eight feet in
height, and by an impact reslstant gate of not less than flve
and not more than eight feet.
COMMUNICATIONS
- 22 -
· Beyond compliance Wl.th Section 4, Subsection 7166 of the Santa
Monica Municipal Code, requiring underground installation of
commercial project cables, no mitigation measures for
communication system impacts are recommended. The Project
sponsor shall contact GTE's office of Service Planning in
order to determine additional infrastructure or facilities
needs and to coordinate the timing of the required telephone
service.
Public Services
FIRE PROTECTION
· Unless otherwise mitigated through design solutions reviewed
and approved by the Fire Department, no building or portion
of a building shall be constructed more than 150 feet from the
edge of a roadway of an improved street, access road or
designated fire lane.
Unless otherwise mitigated through design solutions reviewed
and approved by the Fire Department, the entrance or exit of
all ground floor units shall not be more than 150 feet from
the edge of an access road or designated fire lane.
Fire hydrants shall be located on-site, Their number and
location will be determined after the Fire Department reviews
definitive Project plans and specifications.
- 23 -
A wet standpipe water distribution system shall be installed
throughout the Project.
· Fully automatic sprinkler systems shall be installed
throughout all ProJect structures.
· Fixed extinguishing systems shall be installed in restaurant
and kitchen areas.
Automatic fire alarm systems shall be installed throughout all
Project structures.
· Improvements to the water system as may be required to provide
necessary fire-flow to the Project, Any necessary
improvements shall be provided at the expense of Developer.
Developer shall contact the City of Santa Monica Department
of General Services and the Fire Department to determine
required f1re-flow and specific water rna1n 1mprovements.
· The Project shall comply with all applicable state and local
fire ordinances.
· Definitive Project plans and specifications shall be submitted
to the Fire Department, and requirements shall be satisfied
prior to issuance of a building permit.
- 24 -
POLICE PROTECTION
· Public spaces, such as hallways, elevators, and entrances
shall be designed to prevent areas of concealment.
· Adequate lighting levels shall be provided for the Hotel
perimeter and adjacent beach frontage. Such lighting,
however, shall be designed to minimize illumination impacts
on surrounding land uses.
Hotel guests shall be informed of beach safety guidelines,
use of emergency telephone numbers and telephone extensions
of the security department. Signage notifying Community
Center users of similarly available security procedures shall
be provided in the Community Center,
A system shall be established to enable Hotel staff to rekey
entrylocks whenever a key is lost, rendering previous keys
useless.
Developer shall meet with the Police Department for security
design assistance. Prior to issuance of a building permit,
Developer shall prepare and the Pol~ce Department shall
approve a security plan for the Project.
Upon completion of the Project, Developer shall provide the
Police Department with a des~gn of the ProJect, The diagram
- 25 -
shall include access routes, Hotel unit numbers, and any
information that might facilitate police response.
STREET MAINTENANCE
- City streets impacted by construction activities shall be
rehabilitated as necessary to the satisfaction of the city's
General Services Department. Rehabilitation costs shall be
borne by Developer.
Enerqy
ELECTRICITY
-
The Project shall conform to Title 24, Article 2 of the
California Code of Regulations. This Article concerns energy
conservation standards for new residential and nonresidential
buildings, and provides guidelines on heating and coollng
design, water heating and cooling design, water heatlng,
electrical dlstribution, lighting and other forms of energy
consumption. Buildings constructed as part of the Project
would be required to comply with the regulations 1n force at
the time of the application for the necessary buildlng
permits.
.
Developer shall prepare support energy analyses of all
bUl1ding deslgns as part of the Project, and conslder all
economically attractive conservation measures for lnclusion
- 26 -
in the project. Unnecessary consumption of energy during
construction, operation and maintenance shall be avoided;
siting orientation and design should be done so that energy
consumption is minimized: and reduction of peak energy demand,
use of alternative or renewable fuels, and recycling should
all be encouraged,
· Toplighting and sidelighting should be considered for their
potential energy savings and if feasible, shall be
incorporated into building design as an effect1ve means of
utilizing sunlight to reduce energy consumption. Toplight1ng
involves installation of clear or translucent windows as an
integral part of new building roof construction, High
performance glass or double glazing shall be 1nstalled to
minimize heat gain and loss. Effective sidelighting
requires strategic choice in size, shape, number and
orientation of windows.
Lighting controls shall be installed in the Project and shall
incorporate an automatic control system for adjusting the
lighting level of electric lights. Such controls shall act
to sense the measure of daylight and accordingly shall adJust
lights to appropriate levels,
Motion sensor-controlled lighting shall be installed in the
Project, where feasible,
- 27 -
· Energy saving lamps shall be installed in building operations
support rooms, such as the kitchen pantry,
NATURAL GAS
· New building design and construction shall conform to energy
conservation standards specified in Title 24 of the California
Administrative Code. Developer is required to comply with
state standards through implementation of one of the following
measures: incorporation of a set of energy conserv1ng design
features, specification of maximum energy consumption limits
for designated building uses, or the use of non-depletable
energy resources,
Fiscal Impact.s
Because the Project provides a net fiscal benefit to the City of
Santa Monica, no mitigation measures are recommended.
Recreation
The City shall increase the personnel and equipment required
to maintain the beachfront adJacent to the Project, if beach-
going activity increases sUfficiently to require it.
The ProJect shall include appropriate signage along w1th the
beach and in and around the Communlty Center to not1fy beach
- 28 -
visitors that the changing rooms and public restrooms in the
Public Beach Facility are intended for public use. Prior to
its approval by the City of Santa Monica and the California
Coastal Commission, a signage program shall be reviewed by the
Los Angeles county Department of Beaches and Harbors.
Public parking lot #530, located at 530 Pacific Coast Highway
(south of the project site) shall be striped and its entrance
gate relocated to allow lifeguard and paramedic access to the
beach, after such time as Developer obtains all permits and
approvals required for such work from the applicable
governmental agencies.
CUltural/Historical Resources
Prior to commencement of construction of the Project,
Developer shall prepare a detailed plan for review by the Clty
of Santa Monica discussing the relocation of the North House,
Such plan shall include proposed relocation techniques,
rehabilitation measures, and a demonstration of appropriate
liability insurance.
· To the extent feasible and consistent with public access and
Project design obJectives, the Project shall conform to the
"Secretary of the Interior's Standards for Rehabilitation and
Guidelines for Rehabilitating Historic Buildings, " Such
conformance shall include a ProJect design which 15
- 29 -
historically and architecturally compatible with the existing
North House, and shall include preservation of the North
House's interior and exterior historic fabric, with regard
to the preservat~on of the North House, economic
considerations shall not influence the feasibil~ty or
renovation under the Secretary of Interior Guidelines without
approval of the Zoning Administrator.
The Project shall comply with the specific requirements
imposed as a result of an issuance of a Certificate of
Appropriateness with respect to historical preservation,
The North House shall be moved in one piece, and shall be
adequately secured and protected to reduce damage to its
interior and exterior. Should it be determined the North
House cannot be moved in one place, the City I S Landmarks
Commission shall review an alternative approach, The
Developer shall acquire appropriate liability insurance to
insure the North House from inadvertent damage or destruction
as a result of its relocation.
Tiles from the existing pool shall be used if feasible and
appropriate in the Hotel Pool, or elsewhere on the Property,
· The entire Property shall be photo-documented in its current
state before development proceeds. A photograph~c record
shall be made of all interior and exterior historic fabrlC if
- 30 -
preservation is not possible. Any photographic documentation
shall be of archival quality and shall be delivered to the
City upon completion.
A plaque commemorating the Property shall be incorporated into
the Project.
e The North House exterior shall be restored to its original
design consistent with preservation practices approved by the
C~tyls Landmarks Commission, A preservation arch1tect shall
be present on the Property during the relocat1on of the North
House and shall monitor the rehab~litation of the North House,
The selection of the preservation architect by Development
shall be subject to approval by the Landmarks Commission,
which approval shall not be unreasonably withheld or delayed,
· Developer shall preserve the following interior elements of
the North House structure listed as the "primary historic
fabricll.
The living room, dining room, entry hall and stalr,
The wood flooring of the non-utl11ty areas of the first
floor.
The wood wainscot and full height paneling WhlCh occurs
throughout the non-utility areas of the first floor,
- 31 -
The doors, windows, casings and associated hardware which
is original to the building.
The four corner dining room cabinets, surmounted by
exquisi te hand-carved shell forms, which are integral
extensions of the dining room's paneling.
The main stair and entry hall.
The Italian marble fireplace ln the livlng room.
The ornamental wood ceiling in the guest bathroom.
The ornamental tile-work in two upstairs bathrooms.
The North House shall be rehabilitated including the
reconstruction of the chimney, the return of the porte-cochere
to is original configuration, rehabilitation of all facades,
the restoration of the shutters on the two first floor windows
on the northern facade, and removal of the plywood panels on
the west balcony and the restoratlon of the balcony.
In addition to the rehabilitation of the original exterior of
the North House and the preservation of the interior elements
listed above, Developer shall preserve and/or photo document
and commemorate the following features:
- 32 -
The brickwork of the front porch shall be rehabilitated
preserving its geometric pattern.
Representative panels from the series of mosa~c tile pool
panels shall be preserved and incorporated into the
rehabilitation and/or construction of the Community
Center.
The sea water bulkhead and the gate on the east side of
the building shall be photo-documented,
· During the City's Landmark Commission's review process, the
City shall ensure that the new work on the Project is
compatible with the North House in terms of size, scale,
design, materials, color and texture.
· The new construction shall relate to the North House in the
following manner.
Proportion of openings: Width to height relationships of
doors and windows.
Rhythm of solids to voids in the facade: Alternat~on of
strong and weak elements,
- 33 -
Architectural details: Continuity of elements such as
cornices, arches, balustrades.
Scale: Size of building and detail in relationship to
people, relationship of building to open space,
Aesthetics
The Project shall include additional modifications of the
proposed building mass and architecture to alter the extent
of aesthetic effects. Examples of such mitigation could
include creative facade modulations and 1ndentations to break
up the wall on the Pacific Coast Highway elevation,
During the Project's architectural review approval process,
the city shall evaluate building mass, height, materials,
colors, and perimeter and exterior interior landscaping, to
ensure their appropriateness for their location. Speclal
attention shall be given to colors and building materlals to
ensure compatibility with surrounding properties.
.
The Project shall comply with applicable sections of the
City's xerlscape ordinance,
Miscellaneous
- 34 -
Developer shall make ava1lable to Project employees bus tokens
for the Santa Monica Municipal Bus Lines at one-half (1/2)
cost and shall maintain a visible display of public transit
information in the Community Center.
· Developer shall offer all permanent full-time Project
employees a flexible benefit package, including child care
benefits, at no cost to the employees.
RAL:ncv:RL12CS28.223
06/29/90
- 35 -
EXHIBIT "DII
DEVELOPMENT AGREEMENT between THE CITY OF SANTA MONICA
and SANTA MONICA BEACH DEVELOPMENT LIMITED PARTNERSHIP
Requirements of the General Services Department
1. Developer shall construct a paved concrete connection at least
14 feet wide from the Project to the existing beach bikepath
as shown in the project Plans. The connection shall be
constructed in accordance with the standards which were
utilized for construction of the bikepath north of the Santa
Monica Pier prior to the Adoption Date. Developer shall also
realign the existing beach bikepath as shown in the Project
Plans. The Developer shall be responsible for obtaining all
necessary permits from the City and State for such
modifications to the beach bikepath. There shall be no
interruption of use to the existing beach bikepath during
construction of the new connection to, and realignment of, the
existlng beach bikepath.
2. Developer shall construct a five (5) foot wide concrete
sidewalk as well as concrete curb and gutter along the ent~re
eastern Property line of the Property, as shown in the ProJect
Plans.
3. Developer shall repair any pavement damage to Paciflc Coast
Highway between the northern and southern boundaries of the
Project caused by construction vehicles travellng to and from
the Project, Determlnation of what repalrs Developer 15
required to perform shall be based upon an objective payment
analysis carried out by the City after construction has been
completed but prior to issuance of the Certificate of
occupancy for the Hotel. Developer shall be responsible for
obtaining all necessary CalTrans permits for such repairs.
4. A hydrology study shall be performed by Developer to identify
any drainage facilities which may be necessary on the
Property.
5, The Developer shall provide refuse collection and recycling
facilities for the Project which shall be accessible to City
refuse and recycling collection vehicles. The
refuse/recycling collection area in the Hotel portion of the
Project shall be a minimum twenty (20) feet by twenty-five
(25) feet in size with a minimum fourteen (14) foot headroom
clearance for collection vehicles.
6, Developer shall formulate and implement an on-site solid waste
recycling plan to be approved by the City. This plan must
show the proposed methods by which the Project will collect
all recyclable solid waste and transport it to a materials
reprocessor, This plan shall also show how the Project will
achieve a goal of twenty-five percent (25%) total solid waste
diversion (by volume) by January 1, 1995 and a fifty percent
(50%) diversion (by volume) by January 1, 2000.
-2-
7. A water recycling system for the Hotel laundry facility shall
be selected and installed by the Developer following approval
by the City Engineer, which approval shall not be unreasonably
withheld or delayed.
8. Developer shall conduct a study to evaluate the feasibility
of providing on-site co-generation or a solar-heating system
for forty percent (40%) of all water heating demands by the
Project, including without limitation the demands of the Hotel
Pool (but excluding Hotel laundry facilities). This
feasibility study shall include as a part of its evaluation,
a study of whether such co-generation or solar heating-system
will be cost-effective for Developer and aesthetically
compatible with the Project. Developer shall submit the
feasibility study to the City Manager for approval.
9, Non-disposable food containers (plates) and utensils shall be
used for all non take-out food service in the Project. All
disposable take-out food service conta~ners shall be
recyclable. The Developer shall provide collection containers
for this recyclable waste and shall include in its overall
recycling plan a discuss10n of the methods which will be used
to collect, transport and process this recyclable waste from
the food facilities. The Developer shall also carry out a
twice daily beach litter cleanup effort during the Peak
Act1vity Period and once daily during the Non-Peak Activity
Period to collect and properly dispose of all project-
-]-
generated beach litter within five hundred (500) feet of the
Project.
10. All applicable General Services Department fees and charges
shall be paid by the Developer which may include the
following: sewer connection fee, water connection fee, water
meter fee, street use, use of public property and barricade
permit fees. At the discretion of the General Services
Department, the Developer may be required to construct the
necessary water and sewer improvements for the Project in lieu
of payment of the water and/or sewer connection fees, provided
that the cost of said construction shall not exceed the amount
of the water and/or sewer connection fees which Developer
otherwise would have paid.
11. Any damage to off-site public property or improvements which
are caused during the construction of the project shall be
repaired by the Developer,
12. All construction activity, includlng actual construction,
staging of constructlon, delivery of materials and storage of
materials and equipment, shall be confined to the boundaries
of the Project. Any use of public property around the Project
for construction activity shall only be approved if absolutely
necessary for the completion of the Project. If a use of
publlC property permit is requested and granted, the duration
of each permit shall be seven (7) days and each separate seven
-4-
(7) day permit shall be charged at the rate of One Dollar
($1,00) per square foot of public property used.
RAL:hs:DW12DS25.223
(06/25/90)
-5-
~
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11-8
JUL 1 7 1990
JUl J 1 i9~~
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THE SANTA MONICA BEACH HOTEL AND COMMUNITY CENTER
CITY COUNCIL STAFF REPORT
'-
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COUNCIL MEETING DATE: JULY 17, 1990
ATTACHMENTS AVAILABLE AT ADDITIONAL CHARGE UNDER SEPARATE COVER
p-(!
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JUL 1 7 1990
rAUs .,~,. ~n
JUl 3 1 1990
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THE PROPOSED SANTA MONICA BEACH HOTEL
AND COMMUNITY CENTER
CITY COUNCIL STAFF REPORT
TABLE OF CONTENTS
SUMMARY, .
INTRODUCTION . .
BACKGROUND
. . . . . ~
PROJECT DESCRIPTION. .
& . . . . . .
Floor
Santa
Santa
Other
. . .. "
. .
Area Summary" ...
Monica Beach Hotel. . . . . . . . , . .
Monica Beach Community Center
Project Aspects , . . . . . . . . . . . . ~
CEQA COMPLIANCE AND ENVIRONMENTAL REVIEW PROCESS .
Final EIR Addendum 1.
Final EIR Addendum 2.
.. . . . . . .. . . ~
DEVELOPMENT AGREEMENT. . .
. . .
TARGETING OF TOT REVENUE .
CONCESSION AGREEMENT AND GROUND LEASE.
DISPOSITION AND DEVELOPMENT AGREEMENT. ,
TRI PARTY AGREEMENT. . .
. .
BUDGET/FINANCIAL IMPACT. .
. . .
MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE, .
PLANNING COMMISSION ACTIONS AND RECOMMENDATIONS.
Public Beach Facility Comparative Analysis.
STAFF RECOMMENDATIONS. , ,
\._~
~
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-- ~.
................
. . .
..
. . 1
, . 1
. . 2
. .
, , 6
, .
7
. , 8
, . 9
. .12
. .
, .14
. ,17
, .19
, ,2 a
,21
. .21
, .24
, .26
.26
. .28
. . . ,2 8
,31
. .36
~
ATTACHMENTS:
1. Planning Commission staff Report (May 23, 1990)
2. Development Agreement
3. Concession Agreement and Ground Lease
4. Disposition and Development Agreement
5. Tri-Party Agreement
6. Planning Commission Information Item (May 30, 1990)
7. Resolution Certifying Final Environmental Impact Report
with Statement of overriding Considerations
8. Ordinance Adopting the Development Agreement
9. Resolution Authorizing the Negotiation and Execution of
the Concession Agreement and Ground Lease
10. Resolution Authorizing the Negotiation and Execution of
the Disposition and Development Agreement
11. Resolution Approving the Tri-Party Agreement
12. Mitigation Monitoring Plan
w/sstb1
~
C/ED:PPD
COUNCIL MEETING: July 17, 1990
Santa Monica, California
TO: Mayor and City council
FROM: City Staff
SUBJECT: Recommendation to certify Final Environmental Impact
Report; Adopt statement of Overriding Considerations;
introduction for the first reading of an ordinance
Adopting the Development Agreement; Authorize
Negotiation and Execution of the Concession Agreement
and Ground Lease, Disposition and Development Agreement
for the Proposed Santa Monica Beach Hotel and Community
Center Project at 415 Pacific Coast Highway; and
Authorize Execution of the Tri-Party Agreement.
INTRODUCTION
This staff report provides the City council with recommendations
concerning the proposed Santa Monica Beach Hotel and Community
Center project at ~~ Pacific Coast Highway. It recommends that
the city council introduce for first reading an ordinance
adopting the Development Agreement, and authorize city Manager to
negotiate and execute the Concession Agreement and Ground Lease
and Disposition and Development Agreement (DDA) execute Tri-Party
Agreement, and certify the Final Environmental Impact Report
(EIR), adopting a statement of Overriding Considerations for the
potential traffic impacts at the intersection of Pacific Coast
Highway and the California Incline.
SUMMARY
This report provides the Council with:
o a brief history of the site, how and when the proj ect
proposal was selected and an update on events that have
taken place since the project was last before the Council in
June, 1988 (pgs 2-6);
o a detailed description of the proposed hotel and community
center including square footage estimates, land and
programmatic uses, parking provisions, vehicle access,
pedestrian circulation and a proposed development schedule
(pgs 6-14);
- 1 -
o an overview of the environmental review process and
compliance with CEQA which includes a discussion of the
p~blic review process, alternatives analyzed in the EIR and
Addendums 1 and 2 (pgs 14-19);
o a review of the key elements contained in the Development
Agreement including the proposal for targeting of Transient
Occupancy Tax revenue (pgs 19-20);
o a brief description of the purpose and content of the
Concession Agreement and Ground Lease and Disposition and
Development and Tri-Party Agreements (pgs. 21-26:
o a summary of the proposed project's fiscal benefits to the
City including annual revenue payments and municipal taxes
to the City (pgs 26-27);
o a discussion of the proposed project's conformance with the
Municipal Code and General Plan (page 27):
o a presentation of the Planning Commission Actions and
Recommendations from meetings held on May 23 and May 30,
1990 (pgs 28-30), and
o a comparative analysis of a public beach facility
alternative which would convert the existing private
facilities into a City-run public beach facility (pgs
30-35) .
The report concludes with staff recommendations to approve the
project (pgs 35-36). Many sections of the report refer to the
reader to attachments, All attachments have been made
available to the public.
BACKGROUND
The project site is a 4.91 acre beachfront parcel located at 415
Pacific Coast Highway (PCH). The property was originally
developed in the 1920ls as a private estate for Marion Davies by
William Randolph Hearst. The estate was purchased in the 1940's
by a private party and converted to a hotel and beach club, In
1959, the State of California acquired the property and granted
management responsibility to the City of santa Monica under the
terms of a long-term operating agreement.
Since 1960, the property has been occupied pursuant to a
concession agreement by the Sand and Sea Club, a private, limited
membership beach club, Regular access to facilities on the site
- 2 -
is limited to members and their guests.
basis, the Club's facilities have been
civic and recreational organizations.
On a limited, occasional
made available to various
In 1981, the Sand and Sea Club concession agreement as well as
the State operating agreement expired. At that time, the State
directed the City to seek competitive proposals to lease the
property for public use. I'he City selected a proposal that
included a modified version of the Sand and Sea Club. However,
this selection was rej ected by the State due to the continued
incorporation of private memberships for use of the facilities,
The Sand and Sea Club continues to occupy the site pursuant to a
concession agreement on a month-to-month basis for $250,000 per
year, The Sand and Sea Club receives all income from the
on-site restaurant and public parking lot.
In 1986, the State again instructed the City to seek new
proposals for use of the site. The terms of the Request for
Proposals (RFP), which were developed in conjunction with and
approved by the state, included state mandates that any new use
on the site produce at least $500,000 per year in lease revenues,
and that exclusively private use of the site be terminated.
In keeping with the state's and City Council' s directives, on
April 1, 1987, the City issued a second Request for Proposal for
development of the site, The RFP reflected conformance with the
City's Land Use Element of the General Plan, Zoning Ordinance,
and the Draft Local Coastal Plan. The purpose of the RFP was to
select one developer with whom to exclusively negotiate a use
agreement/lease for development of coastal-related,
visitor-serving facilities on the project site, The principal
obj ective of the RFP was to seek a proj ect which effectively
balanced increased revenues generated from the site with
increased public access to the site, while at the same time not
compromising the environmental and architectural quality of the
surrounding residential uses and beachfront, Preservation of the
City Landmark North House was encouraged but not required.
- 3 -
Availability of the RFP was noticed in several statewide
pUblications. Nearly 200 potential developers requested and
received copies of the RFP. Eleven proposals were received by
the deadline of July 1, 1987. city staff from the City Manager's
office, Community and Economic Development Department and
Recreation and Parks Department were assisted by the consulting
firm of Keyser Marsten Associates, Inc. in the review and
analysis of the proposals. The state Department of Parks and
Recreation was also kept advised during the review process,
All eleven proposals were reviewed in detail. The principals
were invited to interviews as well as asked for written responses
to outstanding questions and issues during the evaluation
process. In addition to meeting the obj ecti ves of the RFP,
developers were evaluated on the basis of financial capability,
experience with projects of similar scale and character,
experience in working with public agencies on similar
public/private partnerships, as well as qualifications of key
staff, management experience, and organization and management
approach.
Four development teams emerged as the most capable and
experienced of the 11 proposals, while at the same time most
effectively balancing the public access and revenue generating
components of the RFP. City staff evaluated each of the four
finalists in a number of key land use and lease agreement areas
and recommended to the City council that it select the Santa
Monica Beach Development Partnership to develop the property. On
June 14, 1988 the City council conducted a public hearing and
voted to select the Santa Monica Beach Development Partnership to
enter into exclusive negotiations of lease, development, and
other agreements necessary for development of the property.
Once selected the Partnership began work to more specifically
define a development and programming concept necessary to begin
work on the environmental review documents. This development
took nearly a year to accomplish and included the active
participation of City staff, consultants and the public, Because
- 4 -
<'
of the public nature of the site, the community Center in
particular, the developer convened a public access task force.
This group met several times and played an instrumental role in
the development of the programming aspects of the Community
Center. The task force included representatives from the City's
neighborhood organizations, the School District, the arts
community, recreation and environmental activists. The group
provided the developer with insight into the programming needs of
the community with sensitivity to affordability and accessibility
issues for specific age and ethnic/minority groups.
The developer also presented the proposed project to two City
Commissions that are not typically included in the City's
development review process: the Commission on the status of
Women (COSW) and the Commission on Older Americans. The COSW
voted to endorse the project because of the educational benefits
and opportunities for a model pUblic-private partnership
including the School District, The Commission on Older
Americans voted to endorse the proj ect because of the need for
community room space, the developer's plan to provide shuttle
service to the site and the boardwalk plank across the beach
toward the shoreline.
Due to the beachfront location of the proposed proj ect, the
Recreation and Parks Commission has been involved in the
preliminary review and development of the community programming
aspects of the proj ect. Two public hearings have been held
before the Recreation and Parks Commission. In addition, there
were several interim project status reports presented at
Commission meetings. The first hearing, held in september, 1988
surfaced concern about the lack of active recreational areas
proposed on the site. When staff returned to the Commission in
April, 1990 for a final review, the Commission unanimously voted
in favor of the project, The Commission commended the developer
for the level of community involvement and outreach. The
Commission also supported the Beach Fund allocation priority
regarding capital improvements to the Beach, as presented by
- 5 -
staff, which proposes new active recreational facilities south of
the pier as soon as funds from the project become available.
since council selection of the project, state agencies have also
been kept informed of project developments. Coastal Commission
staff has reviewed and provided comments on the project as well
as the state Department of Parks and Recreation and Caltrans.
PROJECT DESCRIPTION
Existing improvements include the Sand and Sea Club facilities, a
public beach restroom at the northwest corner of the site, a
176-space public beach parking lot and small concession stand at
the south end of the site, Also located on the site is the City
Landmark North House. The Landmarks Commission has recognized
the entire site as one of Historic Interest, The proposed
project would relocate the North House to the northern edge of
the parcel. It would be restored and expanded to house the
Community Center. All other existing improvements would be
demolished.
The Santa Monica Beach Hotel and Community Center would consist
of a full service luxury hotel and an adjacent Community Center
complex, The hotel would contain a minimum of 148 and a maximum
of 160 rental rooms. Twelve suites would be designed to be
sub-divided into smaller suites and single rooms.
The proj ect developer proposes to develop a total of 209,684
square feet of adjusted floor area on the 4.91 acre site, The
following table provides a floor area summary for selected uses
of the project.
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FLOOR AREA SUMMARY FOR SELECTED USES
Per Zoning Ordinance Definition of Floor Area
HOTEL
148/160 Guest Rooms
Hotel Restaurant
Interior Dining
Outdoor Dining
Kitchen
Restaurant Bar
Conference Center/Meeting Rooms
Ballroom/Banquet Facilities
Hotel Guests' Health Spa
98,428 s.f.
4,960
2,030
1,500
1,430
840
4,428
1,512
1,255
COMMUNITY CENTER
Beach Cafe
Indoor Dining
Outdoor Dining
Kitchen
Bathrooms
Public Changing Rooms
Community Room
1,417 s.f.
1,583
349
84
2,330
815 (plus a 1,075'
terrace
Art and Marine Learning Center
Marine Learning Center
Arts/Cultural Center
6,197
2,672
3,525
A total of 528 parking spaces would be developed on two levels of
subterranean parking, These spaces will accommodate employees of
and visitors to the hotel, restaurant, Beach Cafe, community
Center and replace the 176 beach parking spaces currently
on-site,
- 7 -
A shared use analysis of the project's parking demand was
conducted and determined that the peak parking demand would be
524 spaces. The proposed supply of 528 spaces will be sufficient
to accommodate the combined peak hotel and Community Center
demands along with the replacement of the beach parking.
The Santa Monica Beach Hotel
The hotel guest room arrangements consist of single rooms (124),
one bedroom suites (12), two bedroom suites (10), a Vice
Presidential suite and a Presidential suite. Some suites would
be arranged on two floors connected by an interior circular
stair. All the two bedroom suites would be designed to break
down to single rooms, if needed. The two presidential suites
would be designed to break down to separate one bedroom suites,
if needed. A minimum of 148 and a maximum of 160 room keys will
be provided. All rooms feature either direct ocean views or
views of the project's landscaped gardens and have private
balconies or patios.
The architecture consists of 2, 3 and 4 story buildings. The
hotel buildings parallel to Pacific Coast Highway would be
4-stories and 35 feet high. Four stories can be accommodated by
the smaller floor-to-floor height characteristics of a hotel, and
setting the four-story building approximately 5 feet below the
grade of Pacific Coast Highway, since the grade slopes downward
toward the ocean, The design includes mechanical screening to
create a more interesting roof line and more appealing view of
the project from Palisades Park. These roof enhancements would
add a maximum of 10' feet in building height to a limited area.
Thus, the effective building height for these portions of the two
buildings with screening would be 45 feet, 10 feet greater than
the prescribed limit but the same as the 45 feet height maximum
in the R-4 Zone.
In addition to lodging, the hotel is proposed with an
indoor/outdoor restaurant which would begin inside the main hotel
bui Iding and expand outward toward the pool and beach, The
- 8 -
restaurant and bar are approximately 4,960 and 840 square feet,
respectively. There are 100 restaurant seats inside and 100
seats outside with a 25-seat indoor bar area. Other hotel
features include a meeting room/conference center (second floor,
approximately 4,428 s. f,) featuring six meeting rooms equipped
with advanced audio-visual and communications systems;
ballroom/banquet facilities (third floor, approximately 7,572
s.f,); a mUlti-purpose room (ground floor, approximately 2,000
s. f.) to be used for a variety of uses including Community
Center-related performances, film/video screenings, public
meetings and as overflow meeting space for either conference
center or ballroom/banquet facilities. The multi-purpose room
would have no stage or fixed seating.
The Santa Monica Beach Community Center
The Santa Monica Beach Community Center would consist of
approximately 19,633 square feet of space for public use and
recreation. The Community Center would be housed in the
historic Marion Davies North House, a City Landmark which would
be rehabilitated and renovated for community activities. This
would be the first time this Landmark has been open and available
to the public. The existing North House would form the second
and third floors of the Community Center and would be set on top
of a new concrete "plinth" level which would serve as the
Center I s ground floor. All the North House exterior surfaces,
architectural features and significant interior features would be
repaired and restored, consistent with accepted preservation
practices and in keeping with the goal of creating a
pUblicly-accessible, adaptive re-use of the structure,
The proposed Community Center would contain a beach front cafe
with 100 indoor and 100 outdoor seats (approximately 3,433 s,f,),
public changing rooms and indoor shower facilities (approximately
2,330 s.f.), a community meeting room (approximately 815 interior
s. f. and a 1,075 5, f. outdoor terrace) and an Arts and Marine
Learning Center (approximately 6,197 s,f.).
- 9 -
Directly adj acent to the Community Center would be an outdoor
sculpture garden, a children's play area, a seasonal sales/rental
kiosk for beachgoers, and a direct connection to the beach
bicycle path,
The developer would be responsible for construction, staffing and
operation of the beach cafel public changing and shower
facilities I meeting rooml arts and Marine Learning Center and all
related cultural, artistic and environmental programming. The
developer proposes to use revenues from the beach cafe, fees
generated from other public uses of the Community Center and fund
raising to contribute to these operating costs. The developer
anticipates subsidizing the remainder of the Community Center
operating costs from hotel revenues,
The Beach Cafe
The western end of the Community Center's ground floor would
feature a moderately-priced 200-seat cafe with an open kitchen
plan. A walk-up window would also be available for beach
visitors and bicyclists. Packaging of food in recyclable
materials would be required at the walk-up window. The
Development Agreement requires the developer to conduct a beach
litter cleanup effort twice daily during peak activity periods
within 500 feet of the project site,
The PUblic Changing Facilities
Located on the Community Center's ground floor I and adjacent to
the Beach Cafel would be separate Changing rooms and showers for
women and men. Beach visitors would be able to place their
clothing into special baskets to be stored in a secure separate
storage room that would be maintained by Center staff. Towels
and other shower items would be also be available. The changing
rooms would be equipped with basic locker room amenities and
would be open year round.
- 10 -
The Beach Rental Kiosk
During peak summer months, the developer would operate a sales
and rental kiosk adj acent to the beach. This non-permanent,
portable structure would offer a variety of beach items for rent
and/or purchase such as boogie boards, badminton nets,
volleyballs, paddle ball sets, fins, beach chairs, umbrellas,
sunning and skin protection products.
The Community Room
On the second floor of the Community Center, above the Beach Cafe
and facing the ocean, would be a new public meeting room. This
room seats up to 70 people and opens onto an outdoor terrace
facing west. It is intended to be operated on similar terms and
conditions governing the use of other public meeting facilities
now located in City parks. Advance reservations would be offered
for a minimum two-hour use, The room would be available on a
year-round basis. The Community Room would be fully equipped
with a sound system, audio-visual capabilities, and a supply of
tables and chairs to accommodate a variety of meeting formats,
PUblic Restrooms and Outdoor Showers
Public restrooms would
the Community Center.
would also be provided.
be available on the first two levels of
Outdoor showers and drinking fountains
The Art and Marine Learning Center
The Art and Marine Learning Center would consist of
environmental, arts and cultural programming. The center would
promote access to the beach and the arts through a variety of
activities and explorations of the ecology and the arts,
The environmental component would
of the center and offer users
actively involved in monitoring
beach ecology, marine life and
be located on the ground floor
new opportunities to become
cri tical issues affecting the
Santa Monica Bay. The Los
- 11 -
Angeles County Natural History Museum has signed a letter of
intent with the developer to pursue negotiations to manage and
operate the environmental facility.
The arts component would occupy most of the second and third
floors of the center and provide a variety of innovative visual
and performing arts activities. This space includes three
studios, offices and storage areas. It is anticipated that the
westside Arts Center would relocate to the site, Program
examples could include an arts curriculum designed to be part of
the Santa Monica-Malibu Unified School District's Middle School
curriculum and a variety of visual and performing arts classes
geared towards different age groups, including adults and
seniors, other activities could include arts demonstrations,
performances and special events. Weekend programs would consist
primarily of drop-in activities for beach visitors, bicyclists,
and Beach Cafe customers,
other Outdoor Recreation Facilities
Adj acent to the Community Center there would also be several
other outdoor recreation facilities for the public, Immediately
west of the public parking entrance ramp would be a public
sculpture garden. To the west of the outdoor seating area for
the beach cafe would be a children's play area to be equipped by
the developer. A boardwalk plank from the sculpture garden to
the beach area would be provided to improve access to the beach
for those with physical limitations. A new connection to the
beach bike path would be constructed and bike racks would be made
available. Beach volleyball facilities would also be available.
Other Project Aspects
Projeet Art program
The proposed proj ect would display contemporary art, featuring
local artists throughout the site. Art would be featured in the
sculpture garden as well as the hotel gardens, Public art with a
value of at least 1% of hard construction costs would be provided
- 12 -
in the pUblic areas. In addition, privately-owned art would be
provided throughout the project in areas chosen by the developer.
The aggregate amount of both public and private art on the site
will not be less than two million dollars,
Landscape Design Concept
The landscape design concept for the proj ect is composed of a
series of garden areas. Landscape features and flowers would be
a central element in the design of the project. The gardens
would utilize water conservation principles in plant selection,
garden design, maintenance and irrigation. Native Southern
California plants, selected from the City's Guide to Water
Conservation Landscape Requirements, would constitute the
majority of the plant list.
Vehicle Access and Pedestrian circulation
The project design features the following vehicular access and
pedestrian circulation improvements:
o a hotel auto court which accommodates vehicles of
various sizes, including limousines and passenger vans.
All hotel visitor vehicles would be handled by a
24-hour valet parking service. Valets would take
vehicles to either the first or second level parking
area by way of a separate ramp, The auto court is
designed to allow vehicles to turn-around and re-enter
the main project driveway without going down the valet
parking ramp:
o a drop-off lane located in front (south) of the
community Center, This lane permits drivers to unload
passengers and equipment. Drivers would then choose to
either continue to the ramp down to parking level 2 or
turn around and exit the site:
o a pUblic parking ramp located between the hotel and
Community Center on the west end of the site leading
- 13 -
down to the public parking contained on level 2, The
281 ramp would also be used by service vehicles. The
ramp leads to Parking level 1 which contains the
publicly accessible handicapped spaces, hotel parking,
loading and unloading for service and trash vehicles.
o a drop-Off zone for school buses and vans is located
just south of the project driveway, parallel to Pacific
Coast Highway;
o pedestrian access from the public parking level 2 is
provided by way of an elevator to the ground floor of
the Community Center, and by stairs located at the
northwest corner of the parking garage, Public wishing
to access the beach may use either the elevator or
stairs.
o pedestrian and bicyclists would be able to access the
site from the beach (west). A new link to the beach
bike path would be made to the site;
o a five-foot wide sidewalk parallel to Pacific Coast
Highway stretches from the project driveway to the
south end of the site;
o an over-the-sand wood plank system for access to the
shoreline for the disabled.
Proposed Development Schedule
The project would be constructed
of 18 to 24 months beginning in
simultaneous occupancy for the
Community Center in late 1993,
in a single phase over a period
1992, Current plans anticipate
Santa Monica Beach Hotel and
CEQA COMPLIANCE:
THE ENVIRONMENTAL REVIEW PROCESS
The CEQA rev iew
This preliminary
that the proposed
began in August, 1988 with an Initial study.
assessment of the proposed proj ect determined
project could have a significant adverse impact
- 14 -
on the environment and that an environmental impact report (EIR)
should be prepared. On November 7, 1988, a Notice of Preparation
of an EIR was issued, and a scoping meeting with the public,
proj ect developer, City staff and the environmental consultant
was held on November 21, 1988, In April, 1989, an amended
application was submitted by the project developer which proposed
minor changes to the building design and on-site access and
circulation for the project. These changes were incorporated and
analyzed as part of the project EIR,
The Draft EIR was released for public review on December 22,
1989. In response to public request, the initial 4S-day review
period was extended for an additional eight days and closed on
February 13, 1990.
The Draft EIR found that the project would result in beneficial
impacts to the city I s Beach Fund, cuI tural and recrea tional
resources and public access to the site. The Draft EIR found
that all potentially significant adverse environmental impacts
could be mitigated to le.ss than significant levels except for
short-term air quality conditions during construction and the pm
peak traffic conditions at one intersection, PCH and California
Incline..
Thirty six comment letters responded to the Draft EIR findings:
five public agencies, thirteen organizations, seventeen
individuals and the project developer. Most comments concerned
issues of traffic, air quality, accessl preservation of the North
House, aesthetics and alternative uses for the site. All comment
letters received during and the DEIR public review period and
their respective responses can be found in the Final EIR, Volume
2.
The Final EIR concluded that the short-term air quality impacts
could be reduced to a less than significant level by requiring
additional mitigation measures. Although traffic mitigation
measures were suggested by the applicant, the Final EIR
maintained the conclusion that the project would have a
- 15 -
significant impact at the intersection of PCH and the California
Incline during weekday afternoon rush hours,
After preparation of the Final EIR, the developer proposed two
project changes to reduce the significant impact. These measures
would require that the hotel restaurant be closed on weekdays
between 3:30 and 6:30 and reduce the size of the Beach Cafe from
200 to 160 seats. Upon a technical analysis by the City's
traffic consultant, staff concluded that these measures were
feasible, enforceable and would reduce the impact to an
acceptable, less than significant level.
The EIR analyzed six alternatives to the proposed project:
(A) No change in pre-project conditions:
(B) Hotel development at decreased intensity:
(C) Public park and parking lot;
(D) A mixed-use recreational facility including restaurant,
museum, meeting room, and a parking lot;
(E) Public beach facility and restaurant, and
(F) Alternative sites for the proposed project.
The selection of alternatives was based on an ability to satisfy
the two major criteria for alternatives established by the CEQA
Guidelines: the potential to mitigate significant
project-related impacts and the feasibility relative to the
project Objectives. these objectives were:
o To remove the private beach club use of the project
site in response to a directive from the state.
o To provide for increased public access to the project
site.
o To provide a minimum annual revenue of $500,000 to the
City for beach improvements and maintenance.
o To provide for development of coastal/beach-dependent
activities.
- 16 -
o To apply the highest standards of architectural design
to the proposed development on the project site, with a
mix of uses that are both archi tecturally and
environmentally sensitive to the site and adjacent land
uses.
Alternatives were also based on other development proposals
received during the city's Request for Proposals process.
Further, alternatives A and F and a discussion of the
environmentally superior alternative are specifically mandated by
CEQA.
Public comments were received addressing policy issues such as
allowing beach land to be used for private development and the
perceived loss of recreational facilities. These comments
raised issues that are not necessarily related to environmental
review or proj ect-related impacts but are policy-related as to
the appropriate use of the site.
Final ErR Addendum 1
After preparation of the Draft EIR, a possible conflict was found
between the proposed design of the parking facility and
provisions of the Santa Monica Bay Preservation Ordinance of
1973. This Ordinance regulates construction of certain
IIbuildingsll west of the 1921 Mean High Tide Line. It is the
opinion of the City Attorney that it is unclear whether this
Ordinance affects a wholly subterranean parking facility, as
proposed by the developer. Therefore, the developer has prepared
an al ternata design for the subterranean facility, locating it
completely east of the 1921 mean high tide line. This
alternative is included in the event that the original design is
found violative of the Santa Monica Bay Preservation Ordinance,
Since the ultimate resolution of this issue is unclear, the
original and alternate designs for the subterranean parking
facility are presented as options in the Development Agreement
and an Addendum to the ErR was prepared,
- 17 -
Addendum 1 analyzed a development alternative consisting of the
proj ect as proposed but with the two-level subterranean garage
located entirely east of the 1921 Mean High Tide Line. Under
this alternative, the location of the driveway entrance to the
site would remain the same, but the pUblic parking ramp would
begin approximately 10 feet to the east of the location shown for
the proposed project and curve under the hotel (see Addendum 1,
Figure 1). The hotel's valet parking ramps would remain as shown
in the project, Under this alternative, each parking level would
be rectangular rather than square in shape.
Square footage changes under this alternative as compared to the
proposed project are limited to subterranean parking levels,
hotel back-of-house and health spa, and the hotel multi-purpose
room, This alternative does not change the gross or adjusted
floor area of the Project as analyzed in the DEIR or FEIR
because: (1) subterranean parking is not counted in the City's
definition of "floor area," and (2) the additional floor area
needed for the health spa and hotel back-of-the-house areas
(which results from a less efficient rectangular design of the
P-l parking level) is no greater than the floor area associated
with the hotel mUlti-purpose room, which has been eliminated in
this alternative to accommodate the new public parking ramp.
The environmental implications of this development alternative as
compared to the proposed project are discussed in the Addendum.
The document concludes that, although there would be some
increase in construction noise and air quality related impacts
with this alternative as compared to the proposed project, these
increases would not create any significant impacts. All other
density-related impact issues and design-related issues would be
the same or comparable to the proposed project.
The costs of constructing the alternative garage design are
substantially higher than the preferred garage. If the developer
elects to construct the alternative garage design, up to half of
the additional construction cost to a specified maximum may be
offset by percentage rent over time. The amount of construction
- 18 -
rent would never be less than $650,000.
would never be less than $1 million.
The annual base rent
Final EIR Addendum 2
On May 22, 1990, following publication of the Final EIR, the City
received a letter from the California Department of
Transportation (Caltrans). This letter requested that the
project include a 121 wide, 350' long acceleration lane for cars
turning right and merging into southbound peH from the proj ect
driveway, since the DEIR and FEIR did not analyze and/or
recommend an acceleration lane, a second Addendum was prepared to
analyze the environmental implications of installing a lane for
vehicles exiting the site and merging southbound into Pacific
Coast Highway. Addendum 2 eval ua ted the areas of potential
environmental impact from this alternative design. It determined
that the potential for environmental impact existed in right of
way/access and aesthetics.
The addendum analyzed possible ingress/egress scenarios not
evaluated in previous environmental documents. These scenarios
include the proposed project (1) with a traffic signal and
acceleration lane, and (2) without a traffic signal but with an
acceleration lane. The Addendum discusses the potential
advantages and disadvantages of installing an acceleration lane.
If an acceleration lane is included in the project, some minor
design modifications are required, The first hotel wing will no
longer step back between the second and third levels. The
Addendum concludes that this is not an adverse impact since the
setback from PCH has been increased by 12 feet, the width of the
acceleration lane. The purpose of the step backs was to relieve
the impact of the building mass on PCH.
The Addendum concludes that the installation of an acceleration
lane would not create any new adverse impacts, In fact,
beneficial impacts relative to right-of-way/access and aesthetics
are anticipated.
- 19 -
DEVELOPMENT AGREEMENT
The Development Agreement (DA) contains the land use and
development standards that will regulate the project uses,
height, size design and scale of the project. The Agreement
delineates the responsibilities and obligations of both the
Developer and the City before, during, and after construction of
the project.
A detailed discussion of the key elements contained in the DA can
be found in the Planning Commission staff report (Attachment 1,
pages 35 - 46). These elements describe:
o maximum floor area
o building height
o maximum parcel coverage
o minimum setbacks
o access and circulation
o landscaping
o parking
o permitted uses
o changes to the project
o application of existing land use regulations
o Landmarks Commission Review
The DA also describes the mitigation measures required for the
project. Mitigation measures and fee categories include:
o parks and recreation
o arts
o design
o General Services requirements
o public sewer capacity allocation
The Development Agreement, in its entirety, is provided as
Attachment 2 to this report.
- 20 -
TARGETING OF TRANSIENT OCCUPANCY TAX (TOT) REVENUE
The draft Development Agreement submitted by the applicant
includes language targeting 75% of the General Fund - TOT revenue
for the first 10 years of the operation of the hotel to specific
activities. These include:
25% to the Santa Monica Bay Restoration Project or similar
organization or fund dedicated to restoration of the
Santa Monica Bay;
25% to the City for maintenance, security and capital
improvements in City parks, and
25% to the City budget to reimburse the School District for
costs associated with student recreational, artistic
and athletic costs.
The remaining 25% would not be earmarked and would go to the
General Fund.
As the Council will note below, the Planning Commission
recommended earmarking the TOT funds. This issue is considered a
budgetary and policy matter for council consideration,
CONCESSION AGREEMENT AND GROUND LEASE
The City proposes to enter into the Concession Agreement and
Ground Lease (hereinafter "Lease") on its own behalf and on
behalf of the State of California pursuant to the State operating
Agreement. The tenant/concessionaire will be Santa Monica Beach
Development Limited Partnership, The Lease contains the business
terms for the leasing and development of the Hotel, community
Center, and parking facility at the site and is provided as
Attachment 3. The Lease was prepared with the guidance of
outside legal counsel who specializes in real estate matters and
ground leases. The lease is a "triple net" lease, meaning that
the developer will be required to pay all taxes, assessments,
operating expenses, repairs and replacement relating to the
premises during the term.
- 21 -
Prior to commencement of any construction work, the developer
will be required to deliver to the City a performance bond and
labor and material payment bond guaranteeing full performance of
the construction of the project. Additionally a construction
security deposit of $1,000,000 (cash or letter of credit) will be
required as further security for the developer I s construction
obligations~
The Lease provides the City with a guaranteed source of ground
rent income from the property and an opportunity to participate
in the various types of profits the developer may realize from
the project. The Lease also provides that the developer is
responsible for all expenses of Community Center operat1ons, with
no City subsidy.
The Lease obligates the developer to pay a construction holding
fee once it takes possession of the property in an amount between
$54,167 and $79,167 per month. At the end of the construction
(or no later than 18 months after taking possession), the
developer is obligated to begin base rent payments.
The annual base rent will be not less than $1,080,000, The
lease also provides for escalation of the initial guaranteed base
rent to keep pace with inflation, Base rent will be increased
proportionately with the increase in CPI each five-year
anniversary of the commencement date, through the term of the
Lease, with an annual floor of three percent and an annual cap of
six percent, determined cumulatively over each five year period.
The developer is required to pay the City a share of the gross
revenue it realizes from operation of the Hotel. The city will
receive as percentage rent the amount by which the sum of the
following amounts exceeds base rent: 6% of Hotel room occupancy
charges; 3% of Hotel food and non-alcoholic beverage sales, 5% of
alcoholic beverage sales, 10% of Hotel parking revenue; 8% of
electronic information and data service revenue; 10% of sublease
revenue; and 10% of all other revenue, Additionally, the City
will be entitled to receive 60% of all Public Parking Revenue,
- 22 -
seven percent of the net proceeds of any sale, and five percent
of the net proceeds of any refinancing during the term of the
Lease.
The Community Center Operating Agreement is an Exhibit to the
Lease, and is incorporated into the Lease. It governs the
developer's obligations to manage and operate the Community
Center including the Arts and Cultural Center, Marine Learning
Center, Community Room, Public Beach Facility, and Beach Cafe,
The Agreement outlines the city's approval rights concerning
programming at the Community Center, and use of the Community
Rooml and provides for annual performance summaries to be
provided by the Developer. The Agreement also delineates the
manner in which profits, if any, may be dedicated to future
Community Center uses.
The Community Center Agreement contains provisions concerning:
o simultaneous opening of the Hotel and Community Center
(with penalties for delay)
o the goals of the Center;
o the mandatory hours of operation;
o operation of the beach cafel including menu pricing;
o public beach facility hours and usage fees;
o beach rental kiosk operation;
o permissible fees and rules for use of the community room;
o the plan for use of public beach, community center, and
hotel parking;
o approval of sublease operation of Community Center
components;
o the mandatory scholarship program for public participation
in the arts and cultural programming;and
o the City's rights upon default.
In addition to other remedies, the Community Center Agreement
provides that a developer default in operation of the Community
Center, if not remedied, will constitute a default of the
Concession Agreement and Ground Lease. Performance of Community
- 23 -
Center obligation is further guaranteed by a minimum $800,000
ongoing letter of credit.
DISPOSITION AND DEVELOPMENT AGREEMENT
The Disposition and Development Agreement ("DDA") governs the
relationship between the City and the developer from the time the
City approves the DDA and Development Agreement, until the
property is ground leased to the developer, The principal
activities occurring during the DDA period are the acquisition of
additional City and state land use approvals necessary for the
project, and pre-construction development required prior to the
developer taking possession of the property. The DDA is provided
as Attachment 4 to this report,
The DDA delineates the city and state approvals to be obtained by
the developer during the state approval period, The City
approvals consist of approval of the Architectural Review Board,
and approval by the city Landmarks Commission. If necessary,
approval by the Santa Monica Rent Control Board will be required
prior to demolition of existing improvements, The Primary state
approvals include: approval of the Concession Agreement and
Ground Lease by the state Department of Parks and Recreation;
approval of alcohol sales by the State Parks and Recreation
Commission, approval by CalTrans of traffic improvements required
pursuant to the Development Agreement; approval of the
Development Agreement and issuance of a Coastal Development
Permit by the California Coastal Commission, and issuance of a
liquor license from the Alcoholic Beverage Control Board.
The State approval period commences on the effective date of the
Ordinance adopting the Development Agreement, and terminates one
year later. The period is subject to an extension of six months
upon approval of the City, if the developer is diligently
pursuing the state approvals. The period is subject to
additional extensions only under certain delineated conditions
not within the control of the developer, The DDA provides that if
the primary State approvals are not obtained within the state
- 24 -
approval period, either the City or developer may terminate the
agreement. The developer maYI however, choose to waive obtaining
a liquor license and limit its project accordingly, rather than
terminating the agreement.
The DDA describes the partnership's obligations during the
pre-construction development period, which commences upon receipt
of state approvals. During this phase, the developer is required
to: prepare the construction plans and submit them to the City
for approval; to negotiate a guaranteed maximum price
construction contract with a general contractor approved by the
city; obtain a construction financing commitment which will
demonstrate that funds will be available for the construction of
the project; acquire all insurance required to be obtained by the
city j obtain the payment and performance bonds required during
construction: complete an environmental assessment of the
property: and prepare a complete physical and operational plan
for all parking areas of the project. The pre-construction
development period will be 18 1/2 months, subject to extensions
under certain delineated conditions not within the control of the
developer. At the end of the pre-construction development
period, the developer will take possession of the property, and
commence payment to the City pursuant to the terms of the
Concession Agreement and Ground Lease.
The DDA obligates the City to terminate existing tenancies, but
allows the City to retain control of the property until
initiation of the Ground Lease. It allows the City to make use
of the property in manners whiCh would not have a materially
adverse impact on the development of the project or which would
create rights in third parties inconsistent with delivery of
possession of the property to the developer at takedown.
Subj ect to the city's reasonable approval and the rights of
third parties, the developer may enter the property during the
pre-construction development phase to conduct tests, studies and
surveys, The developer will be required to maintain a $500,000
letter of credit as security for the developer's obligations
- 25 -
during the pre-construction development period. The developer is
also required to indemnify the City and state from liability for
the developer's acts occurring on the property.
The DDA also contains provisions concerning title reports and
title insurance; clean up of hazardous materials if found on the
property; approval of construction plans and the construction
budget; defaults and remedies; assignment; extension of the state
operating agreement; and arbitration of certain disputes.
TRI-PARTY AGREEMENT
Since 1949, the City has been party to various operating
agreements with the State, under which state Parks and Recreation
has granted authority to the City to manage State Park land and
tidelands in the city, while title to the land remains vested in
the State. The State has now asked that the City enter into the
IITri-Party Agreement" which is intended to clarify issues
regarding title to and control of beach and beach adjacent lands
in the City. On behalf of the State, the Tri-Party Agreement
will be executed by the state Department of Parks and Recreation,
the State Lands Commission, and the Department of General
services, and approved by the Attorney General's Office. The
Tri-Party Agreement will also: transfer jurisdiction over
tidelands in the City (at the State level) from State Lands to
State Parks for a period of sixty years j establish a boundary
line between tidelands and uplands for the entire Santa Monica
shoreline; and confirm the legal effect of various grants and
legislation transferring title to tidelands, The Tri-Party
agreement is provided as Attachment 5 to this report.
BUDGET/FINANCIAL IMPACT
The lease term proposed for the project is sixty years with an
option to extend the lease to ninety-nine years should there be a
change in state law authorizing such term,
Upon completion, the proposed project would provide economic
benefits to the city of Santa Monica from annual revenues, annual
- 26 -
payments and municipal taxes. Concession and Lease revenues from
the project are restricted for use to the City's Beach fund. Tax
revenues would flow to the City I S General Fund, A summary of
expected annual revenues from the project are shown in the
following table:
ANNUAL NET REVENUES FROM PROJECT
1993 DOLLARS
Concession & Ground Lease Revenues
Possessory Interest Tax
utility User Tax
Sales Tax
Transient Occupancy Tax
$1,080,000
89,000
139,000
34,000
l,671{000
SUBTOTAL:
$3,013,000
Less Revenue from present lease (in '93 $)
Possessory Interest Tax from Present Use
298,000
200
Net Revenue Increase Resulting from Project $2,714,800
There are also provisions for percentage rent payments should
gross sales exceed the minimum annual lease payment, The
percentages for major categories of activity are:
6% - Hotel rooms
3% - Hotel food
5% - Hotel alcoholic beverages
10% - Hotel parking revenue and sub-lease revenue
Base rent and other required financial contributions will be
increased by CPI factors over the term of the lease. Public
access obligations are stated in both performance and financial
terms, In addition, a series of guarantees and security deposits
will be required,
It should also be noted that during construction the developer
would be required to pay rent, The annual amount of construction
rent would be at least $650,000 but no more than $950,000, The
- 27 -
exact amount would be based upon the duration of the construction
period,
MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE
The use of a Development Agreement to approve the proj ect is
proposed due to the time involved for State approvals and the
extended development period. The Development Agreement will
provide a consistent set of land use and development standards
for the entire period of proj ect development and a program of
mitigation measures and other developer obligations.
The Municipal Code establishes procedures for adopting
development agreements. To approve a development agreement, the
City Council must determine that the proposed Development
Agreement "is consistent with the General Plan and any applicable
Specific Plan." However, development standards such as density,
maximum height or permitted uses contained in a development
agreement may vary from those established in the Zoning
Ordinance.
The proposed project is in conformity with the General Plan, the
Zoning Ordinance and the Draft Land Use Plan of the Local Coastal
Program as discussed in the Final EIR, Volumes I and 2 and
summarized in the Planning commission staff report pages 47 - 50
(see attachment 1),
PLANNING COMMISSION AC~IONS AND RECOMMENDATIONS
The Planning Commission held a public hearing on Wednesday, May
23, 1990 in the City Council Chambers. All Planning
commissioners were present to hear public testimony from 34
speakers. The hearing was continued to Wednesday May 30th when
another 14 speakers were heard.
The actions under consideration by the Commission were
recommendations to council to certify the EIR and approve the
Development Agreement. Prior to making a motion, the Commission
questioned staff about:
- 28 -
o the status and use of the Beach Fund,
o the revenue requirements imposed by the State Department of
Parks and Recreation during the RFP review,
o Caltrans' request for an acceleration lane,
o the dewatering required for the subterranean parking,
o alternative uses for the site, and
o the protection of the North House during relocation.
After discussion and consideration of these issues, a motion was
made and seconded to certify the EIR with a statement of
Overriding considerations and retention of the Beach Cafe at 200
seats. The Planning Commission found the reduction in size of
the Beach Cafe unacceptable because it compromised a key project
objective of increasing public access to the site. This motion
included the revised mitigation measures recommended in the
Planning Commission Information Item dated May 30, 1990 (see
Attachment 5). These revisions added more specific, quantified
language to air quality mitigation measures introduced in the
Final EIR. Additionally, the Commission asked that an air
filtration system for kitchen vents be a required mitigation
measure which was incorporated in their action.
The Commission recommended to the City Council certification of
the Environmental Impact Report by a vote of 6 to 1.
Commissioner Nelson opposed the recommendation due to concerns
about the level of analysis on air quality, soils, geology and
tsunami risk. Further, Commissioner Nelson stated his
dissatisfaction with the city.s traffic methodology significance
criteria and his concern about alcoholic beverage sales.
The action of the Planning Commission regarding the Development
Agreement was to recommend approval. The Commission requested
staff to prepare for Council review an alternative using existing
improvements on-site as a public beach facility and the proposed
project. This discussion is provided below, The Commission made
the following additional recommendations: (Staff comments are
shown in parentheses)
- 29 -
1. If legally feasible, the City should require the developer
to give priority status for employment opportunities to
Santa Monica residents, Second priority should go to
persons living within 3 miles of the site. The intent of
this recommendation is to reduce the commute distance of
employees to the site. (The City has received preliminary
indications from State staff that such a requirement would
be unacceptable.)
2. The "economic feasibility" clause with reference to the
rehabilitation of the North House be removed from the DA.
(staff recommended that the clause remain with the
stipulation that the feasibility be subject to staff
approval. The Commission agreed.)
3, A public advisory committee be established to monitor and
review Community Center programming. (The Community Center
Operating Agreement requires the on-going review of the
Community Center by a public advisory group.)
4, The selection of the developer's preservation architect be
approved by the Landmarks Commission.
5. The developer be required to provide a presentation model of
the proj ect for the Landmarks Commission and Architectural
Review Board.
6. The City study the feasibility of installing large elevators
from the public parking level to the Community Center.
7. The City Council earmark the Transient Occupancy Tax (TOT)
from the site and allocation of the tax be subject to public
review.
8. The City review the financial forecast of the Westside Arts
Center.
9. The City Council open the site for public use as soon as
possible.
- 30 -
The Planning Commission voted 5 to 2 in favor of recommending to
the City Council the approval of the Development Agreement,
Commissioners Nelson and Farivar voted against approval. Chair
Nelson stated that he was not opposed to the land uses or to
generating revenues from a hotel on the site but that he needed
more information on the financial aspects of the proj ect and
performance guarantees. Chair Nelson also strongly opposed the
DA discussion of alcohol use on the site. Commissioner Farivar
commented favorably on the land use of the proj ect but voted
against approval of the DA because he felt the architecture was
undeveloped, did not reflect the residential character of
neighboring properties and did not realize the potential as
presented in the developer's proposal. Staff has provided the
following discussion in response to specific requests by the
Planning commission during their deliberations on the proj act.
The Commission requested that this information be presented to
Council for consideration.
Public Beach Facility Comparative Analysis
On May 30th, the Planning Commission asked the City council to
examine more closely a project alternative that would convert the
existing site improvements to a public beach facility. The
commission requested a comparative analysis between the proposed
project and this alternative in the following areas:
o potential revenue to City
o City operating costs
o capital cost (to City)
o net income to city
o number of "public" visitors to site
o traffic/parking
o overall public benefits
To perform this comparative analysis, staff developed a series of
working assumptions about the potential number of visitors,
operating costs and net revenue that might be realized at a
City-run public beach facility at 415 Pacific Coast Highway,
- 31 -
These assumptions are based upon a physical conversion of the
facili ties currently on site. No programming efforts or City
sponsored events are included in the calculations, In all
cases, staff assumed that the pUblic demand for the physical
facilities and access to the site/beach would be quite high.
Potential Revenue Sources
Based upon the existing facilities on site, staff identified four
potential revenue sources: community room rental rates in the
North House, daily visitor use fees, cabana daily use fees, and
parking. It was assumed that any food service would be operated
as a break-even operation in order to maintain affordability to
public.
Hourly Meeting Room Rates
Based upon discussions with the City's Cultural and Recreation
Services Department, staff projected a high demand for the North
House community rooms. Staff estimated that North House could
provide two community meeting rooms that could be reserved for
two hour blocks, three times every weekday, and four times a day
every Saturday and Sunday. Based on maximum occupancy 365 days a
year and room rental rates of $20 for 2 hours, the annual gross
revenue would be $47, 840.
Daily Use Fees
The existing Sand & Sea Club facilities were designed to
accommodate a private beach facility that would generate revenue
from annual membership dues, Conversion to a public beach
facility eliminates this membership fee revenue stream, currently
estimated to be over $1 million annually. In an attempt to
recover this revenue at a public beach facility, staff looked at
charging a daily per person use or admission fee, A survey of
Southern California cities found none that had comparable public
beach clubs i however, of the pUblic facilities located on the
beach, none charge a daily use fee other than hourly meeting room
rental rates and court/field reservation fees.
- 32 -
To help offset facility maintenance and operating costs,
could charge a minimal daily use fee of $2 per person.
would allow visitors access to the existing showers,
pool and paddle tennis courts.
the city
This fee
lockers,
staff estimates that as many as 85,042 persons would visit a
public beach facility at the site every year. This nwnber
reflects the average parking space occupancy rates of 3 north
beach parking lots (#530, #810 and #930) and the #1550 lot
located just north of the Pier. The north lots were chosen for
their relative proximity to the project site. The average space
occupancy for the #1550 lot was also used because it is a high
turnover (high income) lot due to its location next to the Pier
as a destination attraction in addi tion to the beach. Using
these per space averages, staff estimates that 34,017 cars would
park in the 276 space lot every year.
staff calculated a high average vehicle occupancy rate of 2.5
persons per car because of the location of the site and assuming
that many families and groups would car pool to the site. Based
upon 34,017 cars per year, 2,5 persons per car, staff projects
that the site may attract as many as 85,042 visitors per year.
At $2 per person, the daily use fee would generate $170 1084
annually,
Cabana Daily Use Fee
The existing 46 cabanas on-site could also be rented for a daily
use fee. The cabanas are located near the northwest corner of
the site and are housed in a two-story, L-shaped building. Based
on the average year-round parking capacity rates and a $lO/day
use fee, cabana rentals could generate an additional $50,370
annually.
Parking
At the south end of the site, there is a 176 public beach parking
lot, This lot is operated by the Sand & Sea Club, currently,
all revenues from this lot go to the Sand and Sea Club. The
- 33 -
Club has another approximately 100 spaces on site for Club
members.
As stated above, staff projects that 34,017 cars would park at
the site each year. At the current parking fee of $5 per car,
this would generate $170,085 per year.
Annual Revenue summary
Community Room Rentals
Daily Visitor Fee
Cabana Daily Use Fee
Parking
$ 47,840
$170,084
$ 50,370
$170,085
Total Annual
$438,379
Expenses/costs
capital and Rehabilitation Costs
For the city to operate a public beach facility at the site, the
buildings would have to be meet the City and state accessibility
requirements as well as be rehabilltated and refurbished. Staff
estimates that this would cost approximately $2,000,000. Debt
service on a $2,000,000 loan over a 10 year period at 8% would be
$292,120 annually.
Expenses/Operating Costs
staff estimated the operating costs to run a public beach
facility. These estimates include supplies, maintenance,
utilities, security and staffing among others. They are
summarized in the following chart.
General & Administrative
Personnel Expenses
Debt Service
$270,000
$444,420
$292,120
Total
$1,006,540
Net Annual Income <Loss> Projected
- 34 -
Revenue
Expenses
$ 438,379
$1,006,540
Revenue <loss>
<$ 568,161>
Revenue/Expense Sllmm~ry
To operate a public beach facility on a break-even basis, the
City would have to charge an additional $7 per person bringing
the daily fee up to $9 per person. This is in addition to the
$5.00 beach parking lot fee. Therefore, a family or group of 4
people visiting the site for the day would spend about $41,00 for
access to the site, $51.00 if they wanted to rent a cabana,
Further, the state has identified a significant revenue objective
which must be met at 415 PCH: to generate a minimum of $500,000
for the City's Beach Fund. To meet the minimum income objective
with a public beach facility, the daily use fee would have to be
raised to $15 per person, or $65.00 for a group or family of four
visitors. Again, the $5,00 parking fee would be in addition to
the daily use fees.
VisitorS/Traffic
The proposed hotel and Community Center would attract an
estimated 401,750 annual visitors: 171,000 hotel and 230,750
Community Center visitors as compared to the 85,000 estimated for
a public beach facility. The proposed project would generate an
estimated 2,400 daily trips. staff estimates that the public
beach facility would generate approximately the same amount of
traffic as the existing private beach club which is 690 daily
trips.
Conclusion
The proposed Santa Monica Beach Hotel and Community Center
project offers diverse year-round Community Center programming at
no cost to the City. Daily use or admission fees ranging from
$10 to $16 per person work against the objective of creating a
public use that is affordable and attractive to a varied
- 35 -
population of users. In contrast, the proposed project includes
a $1.50 beach facility use fee while at the same time requiring
no City subsidy and providing the state required net revenue
flow,
In summary, although the existing improvements could be converted
to a public facility / such conversion would not achieve the
State's major financial objective and, it could be argued, does
not provide a maximized public access use in terms of unique
recreational/educational opportunities. and support for the
maintenance and operation of the most heavily utilized public
beach in the state of California.
STAFF RECOMMENDATIONS
To approve this project, the City Council introduction for first
reading an Ordinance adopting the DA, certify the EIR, adopt a
finding of overriding considerations for potentially unmitigated
significant adverse impacts / and approve the resolutions
directing the City Manager to negotiate and execute the
Concession Agreement and Ground Lease Agreement and DDA
consistent with the documents attached to this staff report.
CEQA Recommendations
1, The Planning commission and City Staff recommend that the
city Council certify the Final Environmental Impact Report
as complying with the California Environmental Quality Act
(CEQA) and the City's Guidelines for Implementation of CEQA
and as adequately analyzing the recommended project.
2. The Planning Commission and City staff recommend that the
city Council adopt a statement of overriding considerations
for the potentially unmitigated traffic impacts and a
general statement of overriding considerations in the event
any subsequent adverse environmental effects identified in
the Final EIR are not considered substantially mitigated
under the requirements of CEQA (Attachment 7).
- 36 -
Development Agreement Recommendations and Findings
The Planning Commission and City staff recommend that the City
Council introduction for first reading of an Ordinance
(Attachment 8) adopting the Development Agreement as contained in
Attachment 2.
concession Agreement , Ground Lease Recommendation
staff recommends that the City Council approve the attached
resolution (Attachment 9) authorizing the City Manager to
negotiate and execute the Concession Agreement and Ground Lease
Agreement and any exhibits thereto between the City of Santa
Monica and the Santa Monica Beach Development Limited Partnership
consistent with the document contained in Attachment 3,
Disposition and Development Agreement
staff recommends that the City Council approve the attached
resolution (Attachment 10) authorizing the City Manager to
negotiate and execute the Disposition and Development Agreement
(DDA) between the City of Santa Monica and the Santa Monica Beach
Development Partnership consistent with the document contained in
Attachment 4.
Tri Party Agreement
Staff recommends that the Council approve the attached resolution
(Attachment 11) authorizing the city Manager to execute the
agreement of the state of California attached as Attachment 5.
Prepared by:
Lynne Barrette, Assistant City Manager
Paul Berlant, Director of Planning
Mary Strobel, Deputy City Attorney
Suzanne Frick, Principal Planner
Liz Casey, Associate Planner
wjsscc
07/02/90
Attachments: 1.
2.
3 ,
Planning Commission staff Report (May 23, 1990)
Development Agreement
Concession Agreement and Ground Lease
- 37 -
4. Disposition and Development Agreement
5. Tri-Party Agreement
6. Planning Co~~ission Information Item (May 30,
1990)
7. Resolution Certifying Final Environmental Im-
pact Report with statement of Overriding
Considerations
8. Ordinance Adopting the Development Agreement
9. Resolution Adopting the Concession Agreement
and Ground Lease
10. Resolution Adopting the Disposition and
Development Agreement
11. Resolution Adopting the Tri-Party Agreement
12. Mitigation Monitoring Plan
- 38 -
.
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July 18, 1990
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city of Santa Monica
Plannlng Divlsion
Room 212
1685 Main street
Santa Monica, CA 90401
.~o JUL 19 P 4 :38
Attention: Liz Casey
Re: Public Hearing - July 17, 1990
Proposed Santa Monlca Beach Hotel
Ladles and Gentlemen:
I am a resldent of Pacific Palisades, and a former resident of
Santa Monica Clty. The purpose of my letter is to register my
obJection to the proposed Santa Monica Beach Hotel and Community
Center at 415 Pacific Coast Hlghway, The reason for my obJectlons
are as follows:
1. An lntolerable increase of traffic on Paclfic Coast
Highway and burden upon the surroundlng areas;
2. Increased trafflC hazards at or about the development;
3. The adverse lmpact of increased use of the beach on the
beach itself and surrounding areas.
While I realize that Santa Monica clty lost the expected revenues
from the airport converSlon, it does not ]ustlfy the creatlon of
a burden on the coastal and surroundlng area at Paclflc Coas"C.
Highway and Chautauqua,
Without the hotel, it is nearly impossible to traverse PaclflC
Coast Highway between Chautauqua and the Santa Monlca Freeway
during the summer weekends, Trafflc from Chautauqua to Paclfic
Coast Highway backs up almost to Corona Del Mar between the hours
of 11:00 a,m. and 5:00 p.m, Chautauqua is one of two streets by
WhlCh residents of the Palisades are able to travel to the greater
Los Angeles area. The EIR report clearly indicates a dramatic
increase in trafflC by reason of the hotel and communlty center.
/lop I~ j-<:-
/ /.,... .B
IUS 1 lQ90
JUL 31_ J9~
...
\
city of Santa Monica
Page three
July 18, 1990
Re: Proposed Santa
Monica Beach Hotel
Surely there must be, among the collective minds of the City
council, some ingenuity left to come up with a better use for the
land, and alternative ways to generate revenue, without further
desecrating our dwindling natural resources and creating additional
burdens upon the citizenry,
Very truly yours,
MANNIS, BARBAKOW & LERNER
-----
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~uG (} i 1990
PROPOSED BEACH HOTEL
(Remarks delivered to Santa Honica City Council on July 31, 1990)
Two weeks ago, I listened to passionate arguments for and
against the construction of a hotel on the beach. Afterwards, I
was drawn to an almost inescapable conclusion: everyone was
right. It didnlt matter whether they were for or against -
everyone was right. So, what do we do?
Our ~eaches ~elong to everyone. It would be great if there
were no hotels there - or houses or anything except sand. And,
it would be great if there was no litter and, therefore, no need
to maintain those beaches. But, there is litter and it costs
money to keep the beaches clean.
~el'a..tJ P~~~Uld be great if there were no homeless people at all -
or, at least, no homeless people here. Better they should spend
their winters in Kiami and their summers in Boston. The problem
is, we canlt prevent them from coming here - and, we canlt afford
to take care of them, once they are here. We have to deal with
the problem. Koney helps.
What 11m getting at is that we all desire a perfect world
but we live in an imperfect one. What Ilm getting at is that we
all learn, eventually, that life is a compromise. What we have
to do, as rational human beings, is to learn how to compromise in
such a way as to preserve as much of our ideals as possible. We
have to compromise in order to live in this world - and, to
govern ourselves for our own good and for the good of everyone
else. How do we do that?
/),IJ -b r-c
AUG Pi 1990
We make laws and we elect dedicated people to represent us -
to protect us. In the best of all possible worlds, no one wants
for anything and pure Athenian democracy is the norm. But,
that's not the real world, folks. Good government costs money,
lots of it, and pristine beaches don't exist any more. Neither
does unlimited access. Not for people who reside in Santa Honica
and not for millions of others, like me, who live in Los Angeles
or anywhere else. Everyone's entitled, in this best of all
possible worlds, to go to the beach. santa xonica's problem is
that Santa Honica has to pay for the privilege of playing host to
uninvited guests at a party it didn't throw.
so, how does Santa xonica do that? By compromise, that's
bow. Santa Konica can't run on empty. Kore income is needed so
that the city can survive now and in the future. Several years
ago, the Council, faced with a need to raise more revenue, made a
decision to accept Kicbael McCarty's hotel proposal. There were
other submissions, but, of all of them, Kichael's was the one
that made the most sense. It addressed the needs of this
community in a way that none of the others did. It was the best
deal that your city Council could get, anywhere. It provides
access to a clean beach, increased parking, cultural amenities
and considerable revenue to the city. That's why the council
accepted Xichael's plan. It was, and is, a terrific compromise
for the people of Santa Konica.
This City Council is a good city council. It represents its
electorate better than most because it is responsive to that
electorate. It is also ~esponsible to that electorate. If there
was a better way to make better use of the Sand and Sea property,
your council would have jumped allover it. There wasn't and it
hasnlt. Welre living in the 20th century and, like it or not,
weill be dragged all the way into it, despite our kicking and
screaming. You can reject MichaeliS plan and you can boot the
Sand and Sea Club out. Then, youlll have an empty beach for
everyone - for a while. Increased taxes will pay the bills - for
a while. And then therelll be another city council and another
angry group of citizens trying to find a way of dealing with the
need to build, on this very same site, a new luxury hiqh-rise
1,000 room beach botel that charges $1,000 a night, so that Santa
Monica can afford to stay in business - for a while. And, you
know what everyone will say then? "We should have compromised1
we should have gone with Michael when we had the chance.1I
.
,t'iV,i.D ADD r. P-c:.
AUG 1 10nn
CA:RMM
City Council Meeting 8-1-90
santa Monica, California
SUPPLEMENTAL STAFF REPORT
TO: Mayor and City council
FROM: city Attorney
SUBJECT: Election Language for Development Agreement
At its meeting on July 31, 1990, the City Council directed the
city Attorney to prepare language to allow the voters to approve
or disapprove the development of 415 Pacific Coast Highway as
provided for in a Development Agreement between the City and
Pacific Beach Development Limited partnership ("Developer"). In
making this direction, the city Council indicated that it desired
to make this vote determinative, avoiding application of other
initiatives on the ballot to the project, and that it desired to
require an affirmative vote in order to permit the development to
proceed.
Today, at 1: 30 a.m., the City Attorney distributed to the city
Council language to accomplish this objective. This Staff Report
transmits to the City Council revised language made during the
light of day that improves the earlier language,
1
r~ VI;." A-IJD fa ; - <:.-
AUG 1 ,qQO
.
DEVELOPMENT AGREEMENT LANGUAGE
The following language should be included in the Development
Agreement:
45. Voter Approval.
This Development Agreement shall become effective, and the
rights and obligations of the Developer shall fully and
automatically vest, no later than thirty (30) days after the
Adoption Date pursuant to California Election Code section 4050.
As provided in Section 12 above, development of the Property and
the Project shall not be governed by any Subsequent Code Changes,
including initiatives commonly known as the IISave Our Beach"
initiative and "Santa Monicans for a Livable Environment II
initiative which may be adopted by the Cityts electorate after the
Adoption Date.
The city council shall place before the voters at the November
6, 1990, Regular Municipal Election a measure pursuant to Elections
Code Section 4017. The measure shall provide:
The people of the City of Santa Monica do
ordain as follows:
SECTION 1. The City Council of the City
of Santa Monica by ordinance has approved a
development agreement between the City and the
Pacific Beach Development Limited Partnership
for the development of a hotel and community
center at 415 Pacific Coast Highway. The City
council and Pacific Beach Development Limited
Partnership do not desire to proceed with the
development pursuant to the Development
Agreement unless the people of the City of
Santa Monica approve the development by
majority vote, Accordingly, this ordinance is
submitted to the people pursuant to Elections
Code section 4017.
SECTION 2. The development of a hotel
and community center at 415 Pacific Coast
Highway as provided for in the Development
Agreement between the City of Santa Monica and
the Pacific Beach Development Limited
Partnership is approved by the people of the
city of Santa Monica.
The ballot title for the measure shall read as follows:
2
... .. "-..
Shall the development of a hotel and
community center at 415 Pacific Coast Highway
as provided for in a Development Agreement
between the City of Santa Monica and the
Pacific Beach Development Limited Partnership
be approved by the people of the city of Santa
Monica?
If the measure is not approved by a majority vote at the November
6, 1990, Regular Municipal Election, this Development Agreement
shall be deemed terminated and of no further force or effect and
the ordinance approving this Development Agreement shall be deemed
repealed.
3
.. " .. T
CONTRACT DOCUMENTS
The following language should be added to the Disposition and
Development Agreement as Article X, section 10.28:
section 10.28. Termination in the Event
Develooment Aareement is Reoealed. In the
event the Development Agreement is repealed
and of no further force or effect pursuant to
section 45 thereof, this Disposition and
Development Agreement shall be deemed
terminated and of no further force or effect.
The following language should be added to the Concession and
Lease Agreement as Article 37, section 37.21:
section 37.21, Termination in the Event
Develooment Aareement is Repealed. In the
event the Development Agreement is repealed
and of no further force or effect pursuant to
section 45 thereof, this Concession and Lease
Agreement shall be deemed terminated and of no
further force or effect,
4